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Vantage FX Leverage: The Complete Guide

Read through to get valuable insights regarding the types of asset leverage and other features of leverage. This article also consists of the steps to change leverage in a Forex account.

With more than $5 trillion of regular currency exchanges, the Forex industry is undoubtedly the largest market in the world. Forex trading includes buying and selling currency exchange rates with a specific goal of favoring the trader.

When some borrowed money, commonly known as capital, is invested in a stock, currency, or security, it is called leverage. Leverage is quite common in Forex trading, as investors are capable of trading more significant positions in a currency. Here, investors usually borrow money from a broker and then trade enormous currency positions.

While leverage is regarded as a double-edged sword, there are probabilities of magnifying losses. Remember, Forex traders can mitigate forex losses by managing leverage and employing risk management strategies.

Skim through to get valuable insights regarding the types of asset leverage and other features of leverage. This article also consists of the steps to change leverage in a Forex account.

What is Vantage FX Leverage?

Leverage is when an investor borrows money to invest in a stock.

Vantage FX leverage is similar to a loan that a trader acquires from a broker. This is done for the trader to have greater capital to trade with than what they initially deposited. Forex leverage is usually represented in the form of a ratio that ranges from 50:1 to 500:1.

Whenever traders or beginner traders sign up for the first time in Vantage, a sign-up Vantage FX bonus is offered. A welcome bonus payout of US $250 serves as a deposit for traders with a real account of Vantage FX.

In financial jargon, Forex leverage is also known as OPM or Other People’s Money. Remember, leverage can positively and negatively impact traders and investors. If it goes haywire, the losses are capable of exceeding the investor’s initial capital, thereby leading to negative balances.

Vantage FX Leverage by Asset Type

Vantage offers more than 300 instruments for trading. Some of the types of assets of Vantage FX leverage include:

  • Forex Pairs (Presently, 38 pairs of currency are available)
  • Energy Products
  • Major Global Indices
  • Precious Metals
  • Soft Agricultural Commodities
  • CFDs (Currently, 24 different types of CFDs are functional)
  • Vantage FX crypto leverage or cryptocurrencies, etc.

While the standard forex leverage ranges from 50:1 to 500:1, Vantage FX leverage ranges from 100:1 to 500:1. The exact amount or ratio of leverage largely depends on the equity of the clients.

Remember that the initial margin of each broker can distinctively vary according to the size of the trade. For instance, if an investor purchases USD/EUR $100,000, they are likely to hold a margin of $1000. It is to say that the margin requirement of the investor would be $1000/$100,000 or 1%.

The leverage ratio displays the amount a trade size has magnified as a result of the broker-held margin. In contrast, the maximum trading leverage of Vantage is up to 30:1. However, professional traders are capable of applying higher trading leverage of up to 500:1.

How Do You Change Leverage in Vantage FX?

After successfully launching the secure client portal of Vantage, traders are in full control of their account’s leverage. If you wish to change your account leverage, then you need to log in to the client portal.

Follow the steps mentioned to change your account leverage:

  • Input your email address and password, and log in to the Vantage client portal.
  • Click on “My Accounts” from the menu in the left-hand corner of the website.
  • Choose and select the account on which you wish to change the leverage.
  • Locate and click on the small gear icon within the table and request a change.

If your account meets the necessary equity requirements for a change in leverage, you’ll have access to all applicable leverage options. If you wish to reduce your account’s leverage below 100:1, you need to send an email to Vantage. Get in touch with Vantage for support and guidance at support@vantagemarkets.com.

So, your request for altering your account leverage is submitted successfully. Remember, with this; you accept that this involves greater risk and can inflict severe losses if not managed properly.

To Conclude

It is best to maintain lower levels of leverage in forex trading and ensure limiting capital to 1% to 2%. If you’re a Forex trading novice, make sure you carefully cut your losses. Since trading leveraged products like forex and CDFs involves more significant risks, you should clearly understand the potential risk of loss. For further guidance and advice, please refer to our Vantage FX review.

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