About Dynamic
Leverage
At Switch Markets, we utilize Dynamic leverage* for various financial instruments. This allows our traders to maximize their potential by trading with leverage.
* Dynamic leverage can not be applied to CFDs on Digital currencies, Shares, and Exchange-Traded Funds (ETF)
Financial Instrument
Maximum Leverage
Fx Majors
1:1000
Fx Minors
1:500
Metals
1:500
Indices
1:500
Oil
1:20
What is Dynamic Leverage
This is how Switch Markets adapts your leverage to your trading position. This model allows traders to perform at their maximum while maintaining their risk responsibly. Dynamic leverage is applied on an instrument basis, automatically decreasing as volume increases.
For Example
Jonathan
Active Trader
If you trade 5 lots on EURUSD and 5 lots on GBPUSD, then the leverage for both positions remains 1:1000.
5 Lots
EURUSD
5 Lots
EURUSD
Same Leverage Applied
1:1000
But if you trade 10 lots on EURUSD, then the first 5 lots will be calculated with leverage of 1:1000, and the remaining 5 lots with leverage 1:500.
10 Lots
EURUSD
5 Lots
First 5 Lots
1:1000
5 Lots
Remaining 5 Lots
1:500
Forex Indices Margin Requirements
Note: The table above applies to FX majors. FX crosses start with a first-layer margin requirement of 0.2% (1:500), and exotic FX pairs start with a first-layer margin requirement of 5% (1:20), with the subsequent dynamic leverage layers applied accordingly.
Lots
Margin Requirement
Maximum Leverage
0-5
0.1%
1:1000
5-15
0.2%
1:500
15-20
0.5%
1:200
20-50
1%
1:100
50-100
2%
1:50
100-200
5%
1:20
200-500
10%
1:10
Client Account Leverage - 1:1000
Consider a USD account with 2 lots on USDJPY (either Buy or Sell)
Lots
Applicable Margin Requirement
Margin Calculation
Required Margin
2
0.1%
2 (Lots) * 100,000 / 1000 (leverage)
200 USD
2
Margin Requirement in Account Currency
200 USD
Gold & Metals Margin Requirements
Except Silver. Applies to XAUUSD, XAUEUR, XPDUSD, XPTUSD instruments.
Lot Size (Lots)
Margin Requirement
Maximum Leverage
0-1
0.2%
1:500
1-5
0.5%
1:200
5-15
1%
1:100
15-40
2%
1:50
40-70
5%
1:20
70+
10%
1:10
Client Account Leverage - 1:1000
Consider a USD account with 1 lot on GOLD at the price of 2,800.00 (either Buy or Sell)
Lots
Applicable Margin Requirement
Margin Calculation
Required Margin
1
0.2%
1 (Lots) * 100 oz * 2,800 (Price) / 500 (leverage)
560 USD
1
Margin Requirement in Account Currency
560 USD
Silver Margin Requirements
Lots
Margin Requirement
Maximum Leverage
0-2
2%
1:50
2-5
5%
1:20
5-10
20%
1:5
10+
100%
1:1
Client Account Leverage - 1:1000
Consider a USD account with 1.5 lots on SILVER at the price of 32.50 (either Buy or Sell)
Lots
Applicable Margin Requirement
Margin Calculation
Required Margin
1.5
2%
1.5 (Lots) * 5,000 oz * 32.50 (Price) / 50 (leverage)
4,875 USD
1.5
Margin Requirement in Account Currency
4,875 USD
Oil Margin Requirements
Lots
Margin Requirement
Maximum Leverage
0-10
5%
1:20
11-20
10%
1:10
21+
30%
1:3
Client Account Leverage - 1:1000
Consider a USD account with 5 lots on OIL at the price of 75.00 (either Buy or Sell)
Lots
Applicable Margin Requirement
Margin Calculation
Required Margin
5
5%
5 (Lots) * 1,000 barrels * 75 (Price) / 20 (leverage)
18,750 USD
5
Margin Requirement in Account Currency
18,750 USD
Cash Indices Margin Requirements
Lots
Margin Requirement
Maximum Leverage
0-10
0.2%
1:500
10-30
0.5%
1:200
30-200
1%
1:100
200-500
2%
1:50
500-2000
5%
1:20
2000-3000
10%
1:10
Client Account Leverage - 1:1000
Consider a USD account with 100 lots on US30 at the price of 34,500 (either Buy or Sell)
Lots
Applicable Margin Requirement
Margin Calculation
Required Margin
10
0.2%
10 (Lots) * 34,500 (Price) / 500 (leverage)
690 USD
20
0.5%
20 (Lots) * 34,500 (Price) / 200 (leverage)
3,450 USD
70
1%
70 (Lots) * 34,500 (Price) / 100 (leverage)
24,150 USD
100
Margin Requirement in Account Currency
28,290 USD
Future Indices Margin Requirements
Lots
Margin Requirement
Maximum Leverage
0-1
0.2%
1:500
1-3
0.5%
1:200
3-10
1%
1:100
10-20
2%
1:50
20-100
5%
1:20
100+
10%
1:10
Client Account Leverage - 1:1000
Consider a USD account with 10 lots on US30 at the price of 34,500 (either Buy or Sell)
Lots
Applicable Margin Requirement
Margin Calculation
Required Margin
1
0.2%
1 (Lots) * 10 * 34,500 (Price) / 500 (leverage)
690 USD
2
0.5%
2 (Lots) * 10 * 34,500 (Price) / 200 (leverage)
3,450 USD
7
1%
7 (Lots) * 10 * 34,500 (Price) / 100 (leverage)
24,150 USD
10
Margin Requirement in Account Currency
28,290 USD