Amplify your market exposure with flexible leverage. Control larger positions with less capital — like adding more horsepower without a heavier engine. Available across all account types with negative balance protection.
Leverage allows you to open positions larger than your account balance by using a fraction of the trade value as margin (collateral). The ratio expresses how much larger your position is relative to your margin.
With 1:500 leverage, you only need 0.2% of the position value as margin. This means a $200 deposit can control a $100,000 position in the market.
While leverage magnifies potential profits, it equally magnifies potential losses. A 0.2% adverse move on a 1:500 leveraged position would consume your entire margin. Proper risk management is essential.
1 lot EUR/USD at 1:500 leverage:
Position Value: 100,000 × 1.0842 = $108,420
Required Margin: $108,420 ÷ 500 = $216.84
Formula: Margin = (Lot Size × Contract Size × Price) ÷ Leverage
Leverage levels are set per asset class to reflect the risk and volatility characteristics of each market.
| Asset Class | Max Leverage | Margin Required | Example Instruments |
|---|---|---|---|
| Forex | 1:500 | 0.2% | EUR/USD, GBP/USD, USD/JPY |
| Metals | 1:500 | 0.2% | XAU/USD, XAG/USD |
| Indices | 1:200 | 0.5% | US30, NAS100, UK100 |
| Commodities | 1:100 | 1.0% | USOIL, UKOIL, NGAS |
| Shares | 1:20 | 5.0% | AAPL, TSLA, AMZN |
| Crypto | 1:50 | 2.0% | BTC/USD, ETH/USD |
Leverage may be reduced during periods of extreme volatility or for larger position sizes. FXON reserves the right to adjust leverage at its discretion.
Understanding margin requirements helps you plan your position sizes and manage risk effectively.
Choose your lot size. 1 standard lot = 100,000 units of the base currency (or contract-specific for CFDs).
Multiply lot size by contract size and current price. Example: 1 lot × 100,000 × 1.0842 = $108,420.
Divide position value by your leverage ratio. $108,420 ÷ 500 = $216.84 required margin.
Ensure your account has sufficient free margin. Free Margin = Equity − Used Margin.
Leverage is a powerful tool — but like any high-performance machine, it demands respect and discipline.
Always define your maximum acceptable loss before entering a trade. Stop-loss orders automatically close positions at predetermined levels.
Professional traders typically risk 1-2% of their account per trade. Higher leverage doesn't mean you should use it all — size positions based on risk, not margin.
You can reduce your account leverage at any time through the client portal. Lower leverage means higher margin requirements, providing a natural risk buffer.
When your margin level drops to 50%, you'll receive a margin call alert. This is your signal to either close positions or deposit additional funds.
Positions are automatically closed when margin level reaches 20% (Classic) or 30% (Pro/VIP). This prevents losses from exceeding your deposit.
Your account balance can never go below zero. If extreme market conditions cause losses beyond your deposit, FXON absorbs the deficit.
In rare cases of extreme market events (flash crashes, gap openings), losses can exceed your account balance. FXON's negative balance protection ensures you never owe more than you deposited.
This safety net is automatically applied to all retail accounts at no additional cost. If your account balance goes negative due to market movements, it will be reset to zero.
| Protection Feature | Classic ECN | Pro ECN | VIP ECN |
|---|---|---|---|
| Negative Balance Protection | ✓ | ✓ | ✓ |
| Margin Call Level | 50% | 50% | 50% |
| Stop Out Level | 20% | 30% | 30% |
| Adjustable Leverage | ✓ | ✓ | ✓ |
Trade with leverage up to 1:500 and negative balance protection on all FXON accounts.
Risk Warning: FX trading, margin trading and contracts for difference involve significant risk. Sudden price movements, market volatility and leverage may result in substantial losses. Trading may not be suitable for all clients. Before trading, you should fully understand the risks involved and carefully consider whether trading is appropriate for your experience, objectives and financial circumstances.
FXON Ltd does not provide services to residents of the United States or any other restricted jurisdiction. Services are available only to clients who meet the applicable legal age and eligibility requirements in their country of residence. Clients must be at least 20 years old. FXON Ltd's services are not monitored by the Japan Financial Services Agency, and FXON Ltd does not solicit or provide financial products or services to residents of Japan.
All information on this website is provided for general information only and does not constitute investment advice, financial advice, trading advice, solicitation, recommendation or an offer to buy or sell any financial instrument. Clients are responsible for their own trading decisions and should seek independent advice where necessary.
FXON Ltd is incorporated in the Republic of Seychelles with registration number 8428188-1 and registered address at F2-2A, Second Floor, Oceanic House, Providence Estate, Mahe, Seychelles.
FXON Ltd is authorised by the Financial Services Authority Seychelles as a Securities Dealer under Securities Dealer License No. SD091.
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