Trade Without Margin & Unlimited Leverage

How does margin-free trading with unlimited leverage work?

By introducing an innovative leverage model on our Spread and Standard accounts, we have bypassed the limitations imposed by typical leverage and margin restrictions.

The maximum lot size you can now trade is directly linked to the account's equity. Allowing you to leverage up to lot sizes with an equivalent pip value not exceeding the available equity in your account. This aligns your maximum practical leverage with your capacity to absorb adverse price movements.

For example, imagine you have a $500 balance in your trading account with no open deals. The account equity will also be $500, which can all be used to open deals. The maximum lot size that can be opened would be 50 lots, as this lot size has the equivalent pip value of $500 per pip.

If the price moves in the direction of your trade by one pip, the account's equity would then double to $1,000. Allowing you to open up to 50 more lots at the new equivalent pip value of $1000 per pip.

However, if the price moves in the opposite direction of your trade by one pip, it would result in the loss of all of the accounts equity. All trades will be automatically closed and the balance will be updated to reflect the loss. Spreads and commissions have not been taken into account in this example. You must factor in spreads and commissions when trading.

When trading with unlimited leverage, the potential risks and rewards can be very high. It is crucial to know the combined value of each pip of all open deals. In order to establish your capacity to absorb adverse price movements in relation to your equity.