How to Change Leverage on Forex.com

Changing leverage on Forex.com is a crucial aspect of managing your trading risk and enhancing your trading strategy. Leverage allows traders to control a larger position with a relatively small amount of capital, but it also amplifies both potential gains and losses. Here’s a comprehensive guide to understanding and changing leverage settings on Forex.com.

Understanding Leverage
Leverage is essentially a loan provided by your broker to increase the size of your trading position. For example, with 100:1 leverage, you can control $100,000 with just $1,000 of your own money. However, this also means that if the market moves against you, your losses can be significant.

Why Change Leverage?

1. Risk Management: Adjusting leverage helps in managing the risk associated with your trades. Higher leverage means higher risk, while lower leverage reduces the risk but may also limit your potential returns.
2. Market Conditions: Depending on market volatility, you might want to adjust your leverage to adapt to changing conditions.
3. Trading Strategy: Different strategies require different levels of leverage. For instance, scalping strategies might require higher leverage compared to long-term strategies.

Steps to Change Leverage on Forex.com

1. Log In to Your Account: Start by logging into your Forex.com trading account. Ensure that you are using a secure and updated browser for safety.

2. Access Account Settings: Navigate to the 'Account' section of your dashboard. This is typically found under your profile settings or in the main menu.

3. Locate Leverage Settings: Within the 'Account' settings, find the 'Leverage' or 'Margin' settings. This is where you will be able to adjust your leverage ratio.

4. Select Desired Leverage: Forex.com usually offers a range of leverage options, such as 10:1, 50:1, 100:1, or 200:1. Choose the leverage level that aligns with your trading strategy and risk tolerance.

5. Confirm Changes: After selecting the desired leverage, confirm the changes. Forex.com may require you to review and accept a risk disclosure before applying the new leverage settings.

6. Verify New Settings: Once changes are applied, verify that the new leverage settings are correctly reflected in your account. This can be done by checking your account summary or trading platform.

Things to Consider When Changing Leverage

• Impact on Margin Requirements: Changing leverage will affect your margin requirements. Higher leverage reduces the amount of margin needed, while lower leverage increases it.

• Potential Impact on Trades: High leverage can lead to quick gains but also quick losses. Ensure that your trading plan accommodates the increased risk.

• Regulatory Limits: Different jurisdictions have varying regulatory limits on leverage. Check the regulations applicable to your region and ensure compliance.

Example of Changing Leverage: A Practical Guide

Let’s say you have a trading account with Forex.com and you currently use 50:1 leverage. You’ve noticed increased market volatility and want to reduce your risk. Here’s how you can change your leverage to 20:1:

1. Log in: Enter your credentials and access your Forex.com account.
2. Navigate to Settings: Go to 'Account' and find 'Leverage' settings.
3. Choose 20:1: From the available options, select 20:1 leverage.
4. Confirm: Review and confirm the new leverage setting.
5. Check: Ensure that the new leverage setting is applied and reflected in your account.

Conclusion

Changing leverage on Forex.com is a straightforward process but requires careful consideration of your trading strategy and risk tolerance. By adjusting leverage, you can better manage your risk and optimize your trading performance. Always remember to verify changes and comply with regulatory requirements to ensure a successful trading experience.