Leverage & Margin

Elefin offers maximum leverage of up to 1:2000 depending upon the account types. This is a maximum setting and may vary by instrument, account, jurisdiction, risk category or Elefin policy.

Leverage allows a trader to control a larger position with a smaller amount of margin. It can increase potential returns, but it also magnifies losses and can cause rapid stop-out if the market moves against the position.

You can trade with given leverage in your account. High leverage can make even small price movements have a large effect on your equity. You should use leverage carefully, manage position size and understand that losses can occur quickly.

Margin is the amount of funds required to open and maintain a leveraged position. It is not a fee, but a portion of account equity reserved to support open trades.

Used margin is the amount currently reserved for open positions. The more positions you open, and the larger they are, the more margin may be required.

Free margin is equity minus used margin. It represents the amount available to open new trades, absorb floating losses or support withdrawals.

Margin level is usually calculated as equity divided by used margin, multiplied by 100. It helps determine how close an account is to margin call or stop-out.

Elefin’s margin call level is 50%. When margin level approaches or reaches this point, the account is under pressure and the client should consider reducing exposure, adding funds or managing risk immediately.

Elefin’s stop-out level is 30%. If the margin level falls to this level, the platform may automatically close open positions without prior notice to reduce risk.

Yes. If your account reaches stop-out level, positions may be closed automatically by the platform. This can happen quickly during volatile markets, especially when high leverage or large position sizes are used.

Use appropriate position sizing, monitor margin level, place risk-management orders, avoid overleveraging and maintain sufficient free margin. Adding funds may help but does not remove trading risk.

Lower leverage generally requires more margin per position and can discourage oversized exposure. However, risk also depends on lot size, volatility, stop-loss placement, number of positions and overall strategy.

Leverage settings may be adjustable if Elefin provides this option in the client portal or through support. Choosing lower leverage can be a prudent risk-management decision for many clients.

Not necessarily. Maximum leverage can vary by instrument, asset class, account conditions and risk settings. Crypto, shares, indices, commodities and Forex may all have different margin requirements.

Different instruments have different volatility, liquidity and contract sizes. A broker may apply different margin requirements to manage risk across Forex, metals, energies, indices, shares and crypto CFDs.

During high volatility, equity can change quickly and margin level may fall faster than expected. Elefin may also apply risk controls, execution restrictions or margin changes where permitted by policy and market conditions.

Yes. CFDs are leveraged products and carry a high risk of losing money rapidly. You may lose all of your invested capital, especially if using high leverage without appropriate risk controls.

Yes. Elefin offers negative balance protection to help ensure that clients do not lose more than the funds available in their trading account. This means that, under normal market conditions, a client’s maximum loss is limited to their deposited account balance.

If market movements cause the account equity or margin level to fall below the required thresholds, Elefin may automatically close open positions in accordance with its margin call and stop-out rules. This helps manage trading risk and prevents the account balance from moving into a negative position.

Leverage does not change the market movement itself, but it allows larger position sizes relative to account equity. Larger positions means that each pip or price movement has a bigger financial impact.

Opening a trade reserves uses margin and changes free margin. If the trade immediately moves into loss or spread cost is applied, equity may fall and margin level may drop.

Positions may close automatically if stop-loss, take-profit, stop-out or platform risk controls are triggered. Review your trade history and account journal, then contact support if you believe the closure was incorrect.

Adding funds can increase equity and free margin, which may reduce immediate stop-out risk. However, it does not guarantee protection because market prices can continue moving against open positions.

Overleveraging occurs when a trader opens positions that are too large relative to account equity. It can cause rapid losses, margin call and stop-out even during small market moves.

Beginners should treat leverage as a risk amplifier, not a benefit by itself. Start with smaller position sizes, understand margin calculations and avoid using maximum leverage simply because it is available.

Margin requirements may change based on market conditions, policy updates or instrument-specific rules where allowed. Clients should monitor platform notifications and maintain sufficient margin at all times.

Margin requirements can usually be checked in MT5 symbol specifications, order windows or margin calculators if provided. If uncertain, contact support before placing large or leveraged trades.