Pepperstone Leverage – Available Limits
Pepperstone provides its clients with a maximum leverage of 30:1 for forex trading under ASIC, DFSA, FCA, and BaFIN jurisdiction, whereas 200:1 under SCB and 400:1 in its CMA jurisdiction. Leverage is the ratio between the amount you borrowed from Pepperstone and your own investment. So if $30 is being traded per each dollar in your account that you invested yourself--regardless of which trade market it's used in--you're receiving high financial leverage assistance from them. In other words, for every $1 you have in your trading account, you are allowed to trade $30 under FCA, $200 under SCB, $30 under DFSA, and $30 under ASIC.
Using leverage allows traders to increase their potential profits, but it also amplifies losses. Care must be taken when using leverage, as a larger position size will result in greater pip value and impact your P/L more significantly.
The term "margin" refers to the amount of money needed to be deposited into your account in order to enter or maintain a contract with Pepperstone. To understand Pepperstone's margin requirements, you must know that they are given as a percentage of the entire amount. For example, if an amount is 0.5%, 2%, or 1%, then that corresponds to the leverage in your trading account.
Depending on the regulating institution and what commodities you trade, the leverage ratio will differ. Generally, foreign exchange has a higher leverage ratio, while cryptocurrency trading is much lower.
With that being said, 500:1 leverage is available to Pepperstone Pros, who are SCB-licensed. For retail clients, the maximum leverage is 200:1.