Position and account
Both levels are examples. Replace them with the figures in your own Client Agreement. IC Markets states 50% on the accounts we read; Exness and Tickmill pages did not state one in the text we read.
Leverage levels (1:x)
What stays the same
01What leverage changes, and what it does not
Leverage sets how much margin the broker locks for a position. It does not change the profit or loss on a price move, which depends on lots and distance only. With the same lot, higher leverage locks less margin, so the stop-out price sits farther away. That looks safer. It is only safer if you keep the same lot size.
Example: 1 lot of XAUUSD bought at 2,400 with $10,000 equity, margin call at 100% and stop-out at 50%. These are example levels, not any broker’s.
| Leverage | Margin locked | Share of equity | Loss to stop-out | Price move to stop-out |
|---|---|---|---|---|
| 1:30 | $8,000 | 80.0% | $6,000 | 2.50% |
| 1:100 | $2,400 | 24.0% | $8,800 | 3.67% |
| 1:200 | $1,200 | 12.0% | $9,400 | 3.92% |
| 1:500 | $480 | 4.8% | $9,760 | 4.07% |
| 1:1000 | $240 | 2.4% | $9,880 | 4.12% |
| 1:2000 | $120 | 1.2% | $9,940 | 4.14% |
02The trap: the same margin share
Now keep the share of equity you lock as margin at 10% and let the lot size follow the leverage, which is what a higher ceiling tempts people to do.
| Leverage | Lots you can hold | Margin locked | Loss to stop-out | Price move to stop-out |
|---|---|---|---|---|
| 1:30 | 0.12 | $1,000 | $9,500 | 31.67% |
| 1:100 | 0.42 | $1,000 | $9,500 | 9.50% |
| 1:200 | 0.83 | $1,000 | $9,500 | 4.75% |
| 1:500 | 2.08 | $1,000 | $9,500 | 1.90% |
| 1:1000 | 4.17 | $1,000 | $9,500 | 0.95% |
| 1:2000 | 8.33 | $1,000 | $9,500 | 0.48% |
The lot grows about as fast as the leverage, so a price move that was survivable at 1:30 can wipe the account at 1:2000. Higher leverage lets you hold a bigger position. It does not make that position cheaper to be wrong about.
03Four habits that matter more than the leverage setting
- Size from the stop, not from the margin. The position size calculator turns a stop and a risk percentage into lots.
- Check the stop-out price against your stop loss. If stop-out comes first, your stop loss is not protecting you. The optional stop field above checks it.
- Know the margin your position needs before you open it, with the margin calculator.
- If you average down or run a grid, see where stop-out lands with the grid and averaging calculator, and see the total across open trades with the portfolio risk calculator.
With several trades open, a tool such as Tachi Portfolio Sentinel for MetaTrader 5 can alert you about group risk. It is our own product and we earn money if you buy. It reacts after orders exist, it cannot block orders from other EAs, and it cannot prevent a stop-out.
04Questions
What leverage should I use?
There is no single right figure. Use a level that keeps your lot sized by your stop and risk, and check where stop-out lands. For a small account, the minimum capital calculator shows how little you can start with.
Does higher leverage mean higher risk?
Not by itself. The same lot loses the same amount at any leverage. The risk rises when the higher ceiling lets you open a larger lot than your account can carry.
What is a stop-out level?
The margin level at which the broker starts closing positions. It is set by the broker and the entity that holds your account, so use the figure in your own agreement.
Why is margin call different from stop-out?
A margin call is a warning level. Some brokers use one and some do not. Stop-out is where positions start to close. Both are inputs here, and neither is a broker’s number unless you enter it.
Why does the calculator use the entry price for margin?
To stay simple. Real margin moves with the price on some symbols, so the stop-out price here is an estimate. It also ignores spread, swap and slippage.
Do you earn from the buttons?
Yes, we may be paid if you open an account. They appear after the results and show only brokers whose own pages state a maximum at or above your highest level. See the affiliate disclosure.