Open Account Trading Carries Risk

Before most people started trading, they didn’t know what the concept of financial leverage was. In fact, many new traders still remain confused about the topic, its settings and how it can affect their trading.

This step-by-step guide will give you a simple overview about what leverage is and explain how to change leverage on MT4 or MT5.

Do you want to know how to change leverage on MT4 or the MT5 trading platforms? Keep reading to learn more about why leverage matters?

Let’s get started.

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How to change leverage on MT4 or MT5 at TIOmarkets

You can change leverage on MT4 or MT5 with TIOmarkets easily enough by following these simple steps. Keep in mind that you cannot change leverage that is higher than what your account allows. The amount of leverage permissible depends on your jurisdiction, the instrument and is set by the financial regulator. However, in some cases you can submit a request to increase your leverage and we will review it.

This is how to go about doing that.

Ensure that you have no open positions before you change leverage on MT4 or MT5

  1. Register your profile or log in to your secure client portal.
  1. From within your secure client portal, create a demo or live account or select an existing account.

select the account

3. On the account’s overview page, there is an option to enter the account settings for the account. Select this.

enter the settings for the account

4. In the account settings, select your desired amount from the options in the drop-down menu.

select change leverage

5. A confirmation to change leverage on MT4 or the MT5 trading platform, so click OK.

confirm the change of leverage

6. You should see that your request has been successfully submitted and you are done.

leverage change request has been processed

Now you can continue trading and you can confirm the change of leverage for your trading account inside the platform.

This is how to do that.

Open the MT4 or MT5 trading platform.

  1. In the navigator window, find the practice or live account you want to check the leverage for.
  2. Hover your mouse over the account number
  3. A pop up will appear with the account details and you will see the account’s leverage here.
confirm leverage on account in MT4

Now that you know how to change leverage on MT4 or MT5, let’s learn a little more about trading with leverage.

What is leverage in trading?

Some years back, many forex brokers offered a 200:1 leverage as standard, some even more. Which means that you could trade with $200 for every Dollar in your account. Nowadays, many brokers regulated in the European Union or the United States offer much less leverage.

The main reason cited for the reduction and restrictions on leverage was related to protecting investors. Many people who trade in the financial markets do not fully understand how leverage works and some brokers were offering very high amounts of leverage to clients. Which can lead to rapid losses when trading irresponsibly or with an insufficient understanding of it. 

Leverage is an essential part of Forex trading and enables traders to open positions that are far greater than their initial trading capital. This means that traders can take larger positions, which leads to larger profits or losses. For example, with a 500:1 leverage ratio and if the trader opens a position of $100,000 – they would only need $200 (0.2% margin) as the initial margin.

Which is great in terms of affordability and if the price of the asset moves in your favor. However, when the price of the asset adversely moves against you, losses can accrue very quickly. For instance, a $200 margin would only provide 20 pips of adverse price movement on a trade worth $100,000. Many currency pairs can move by that much in about an hour.

You might want to read this article about margin levels to get a comprehensive understanding about trading with leverage and margin.

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Why change leverage on MT4 or MT5 and does it matter?

The concept of leverage in Forex Trading has been compared to a “double-edged sword” because while it increases your profits, it also increases your losses.

Most new traders will just accept the leverage offered by their broker. But that may not be enough for you. If you’re going to be trading large positions, or even if you feel like your risk tolerance is high and want to maximize your potential gains, you’ll want a higher leverage ratio.

But there is such a thing as too much leverage. Trading with too much leverage with a small account balance magnifies the risk of loss. To the point where your entry and timing really matters and the margin for error in this regard becomes significantly reduced.

As well as increasing leverage, it might be a good idea to increase your account balance. To ensure that you are trading in a way where you are sufficiently capitalized instead of just taking on higher amounts of risk through leverage.

Can I trade with high leverage at TIOmarkets?

Yes, you can trade with higher leverage at tiomarkets.com for some instruments. Typically, the leverage for forex will change but the others will stay the same. 

You can see the margin requirements for the different instruments on our contracts specification page. When changing leverage, please be cautious not to overextend yourself, as it will increase your risk exposure.

Now that you know how to change your leverage on MT4 or MT5, you can do that anytime and return to trading!

Open an account with a reputable broker with flexible leverage options today.

Risk disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Never deposit more than you are prepared to lose. Professional client’s losses can exceed their deposit. Please see our risk warning policy and seek independent professional advice if you do not fully understand. This information is not directed or intended for distribution to or use by residents of certain countries/jurisdictions including, but not limited to, USA & OFAC. The Company holds the right to alter the aforementioned list of countries at its own discretion.

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