Admiral Markets Leverage: Everything You Need to Know

What Is Admiral Market Leverage

Leveraging is the process of borrowing funds to facilitate an investment, which if profitable, will magnify your return. In trading, leverage allows professional and retail traders access to large position sizes, even with small deposits. 

To trade with leverage, you will borrow money from your broker. The borrowed money allows you to increase your buying power. After closing the trade, you must return the money to your broker and receive your profit. Conversely, you are liable for any loss incurred. 

Traders must put down a fraction of their trade’s value as a deposit to access and maintain leverage. This is also called margin. The leverage is expressed as a ratio. For example, a 1:500 leverage means you can open a position that is 500 times the size of your margin. By implication, you can amplify your profit or losses by multiplication of 500.  

Admiral markets offer leverage so that traders can open larger positions. Since the broker earns money on swaps, spreads, and commissions, opening large positions would mean more fees for them. Check here for our article on Admiral Markets spread and fees.  

As you may have guessed, there are benefits and disadvantages of using leverages. The most crucial is that it can magnify your profit or loss if the market moves towards or away from your direction. On the upside, it frees enough part of your capital so you can use it for other trading purposes.  

Admiral Markets Leverage by Asset Type 

Admiral Markets leverage range from 1:10 – 1:500. The leverage rate for currency pairs and some CFDs depends on the notional position provided according to the margin requirements. Check here for the margin requirements for different asset classes. You can use the Admiral Markets forex leverage calculator to calculate the amount of capital needed to open and maintain any position.  

The Financial Conduct Authority and European Securities and Market Authority restricted the maximum leverage retail traders can access between 1:2 – 1: 30 depending on the asset class.

How to change Admiral Markets Leverage

Traders must select the leverage they want during the account opening stage. However, you can always alter your leverage amount. To make any leverage change, contact Admiral Markets via email at global@admiralmarkets.com. Make sure to include the new leverage you prefer in the email, along with a confirmation of your account number. 

 Alternatively: 

• Log in to your Trader’s room and locate the “trade” section. 
• Find your live account and click on the three dots on the right 
• Then, change your leverage.  

If you are a retail client:

• Log in to your trader’s room and locate the “trading terms” section 
• Then, apply for professional status. To qualify for this status, you must have at least 1 year of experience in the financial sector. Apart from this, your portfolio of financial instruments must exceed 5,000,000 EUR, and you must have made 10 transactions in the last year.  

Conclusion 

Leverage multiples your trading results – positively or negatively. More importantly, it allows you to increase your trading position beyond what your cash balance can afford. As a result, whether you make a profit or not is entirely up to you, the trader. If you want to learn more about Admiral Markets read our review.