Dynamic Leverage allows for higher trading power for smaller positions, and lower trading power for larger positions. This is built to be flexible for small trades while helping manage risk on very large trades. It applies to all trades, whether you are trading manually, scalping, or using an Expert Advisor (EA).
- Leverage: Your trading power. High leverage (like 1:2000) means you can control a large position with a small amount of money.
- Margin: The deposit needed to open a trade. This is shown as a percentage.
High leverage means a low margin. Low leverage means a high margin.
- 1:2000 Leverage = 0.05% Margin (You pay 0.05% as a deposit)
- 1:100 Leverage = 1.00% Margin (You pay 1.00% as a deposit)
Your margin rate dynamically changes as your position size grows.
How to Calculate Your Margin
Your margin is not calculated at one single rate. We calculate it in portions.
Think of it like income tax brackets. You pay a low tax rate on your first bit of income, and a higher rate only on the income in the next bracket.
Your margin works the same way.
- You get the best margin rate (highest leverage) on the first portion of your position.
- As your position size gets bigger, you move into new tiers.
- The new, higher margin rate only applies to the part of your position in that new tier.
Example: Trading Gold (XAUUSD)
Let's say you want to open a 15 lot position on XAUUSD.
| Tier | Volume in Lots | Leverage | Margin Rate |
| 1 | < 1 | 1:2000 | 0.05% |
| 2 | < 2 | 1:1000 | 0.10% |
| 3 | < 20 | 1:500 | 0.20% |
Your 15-lot position is broken into pieces (portions):
- Portion 1: Your first 1 lot gets the best rate: 0.05% margin (1:2000).
- Portion 2: Your next 1 lot (from 1.01 to 2.0) gets the next rate: 0.10% margin (1:1000).
- Portion 3: Your remaining 13 lots (from 2.01 to 15.0) fall into the third tier: 0.20% margin (1:500).
Your total required margin is the sum of the margin needed for all three portions.
Example: Trading Forex (EURUSD)
Let's try a 30 lot position on EURUSD, a FX Major.
Here are the Tradin tiers for FX Majors:
| Tier | Volume in Lots | Leverage | Margin Rate |
| 1 | < 1 | 1:2000 | 0.05% |
| 2 | < 5 | 1:1000 | 0.10% |
| 3 | < 25 | 1:500 | 0.20% |
| 4 | < 50 | 1:200 | 0.50% |
Your 30-lot position is broken into four portions:
- Portion 1: Your first 1 lot gets 0.05% margin.
- Portion 2: Your next 4 lots (from 1.01 to 5.0) get 0.10% margin.
- Portion 3: Your next 20 lots (from 5.01 to 25.0) get 0.20% margin.
- Portion 4: Your remaining 5 lots (from 25.01 to 30.0) get 0.50% margin.
Your total margin is the sum of all four pieces.
How Closing a Trade Works
When you close part of your position, we release your margin from the highest tier first. For example,
In our 15-lot Gold example, if you closed 5 lots, the margin held for 5 lots from portion 3 (the 0.20% rate) is released.
Need to Know Margin Rules
Friday Close Rule
To protect you from high risk when markets are closed. Gaps and low liquidity can happen when the market re-opens on Monday.
- Rule: Every Friday at 23:00 Server Time, the maximum leverage for all instruments is temporarily set to 1:100 (1% margin).
- When it ends: Leverage returns to the normal dynamic tiers on Monday at 02:00 Server Time.
You must have enough money in your account to cover this 1% margin requirement over the weekend.
News and Holiday Rules
During major news events, bank holidays, or times of extreme market volatility, we may temporarily lower the leverage (increase the margin) for safety. We will always try to notify you by email and platform messages before this happens.
What You Need to Do
- Monitor Your Equity: Always make sure you have enough money (equity) in your account to meet margin requirements, especially when opening large positions or holding trades over the weekend.
- Watch Your MT5 Terminal: You can see your Margin Level % in your Tradin MT5 terminal. This shows the health of your account.
- Avoid Stop-Out: If your Margin Level falls too low, your trades may be closed automatically (a stop-out) to protect your account.
This system is a key risk management tool. It works together with your Negative Balance Protection, which guarantees you can never lose more than the total money in your account.