There is no denying that Exness stands as one of the most used trading platforms in Pakistan. It is pretty simple to create an account on this platform and start your trading journey. However, many newbies struggle to understand leverage in forex trading.
Don’t worry if you are also one of those, as this blog will guide you on how to use leverage in Exness effectively. From this blog, you will learn what leverage is, its types, and whether you should choose low leverage or high leverage for your trades.
What is leverage in Exness?
In forex trading, leverage is a special approach in which you can borrow capital from the broker to invest in your trades. Simply, it enables you to trade for a large amount as compared to what you have in your account as original capital.
You can say that leverage can increase how much you can make from your trades. Leverage in Exness normally shares the ratio of 1:100, 1:1000, or 1:2000, while you can also set other ratio sets.
This ratio indicates how much you can invest in a particular trade. For example, in a 1:1000 trade, it means that you can trade for $1,000 with your $1 as original capital. The amount of profit and loss will be divided according to the selected leverage option.
In Exness, you will be given options for adjusting leverage according to different parameters like how much you have in your account, success rate, and your region.
Types of Leverages in Exness
Undoubtedly, Exness holds the tag of being almost legal in Pakistan, which is why many people are using this platform. Therefore, it is essential to learn the types of leverage in Exness for choosing the right option to outperform in your trades and save your capital.
Here, we have briefly discussed the types of leverage you can find on this platform for adjusting them in your trades.
Unlimited Leverage
This type of leverage is normally available in accounts with small equity. While using unlimited leverage, you will have extremely high exposure potential because you are free to choose how much ratio you want to set for leverage in your trades.
Unlimited leverage has been designed for experienced scalpers who want to make more money from their short trades. If you are an experienced trader and want to place trades for short periods like a few minutes, you can rely on this type of leverage.
However, it can be extremely dangerous for long trades because there will be very low margin for losing your capital.
High Fixed Leverage
This leverage type is normally available in standard and pro accounts of Exness. You can adjust ratios of 1:1,000 and 1:2,000 in this leverage type, which shows that you can expose $1,000 with your $1 only, but you will have a chance of losing your money within a fraction of a second.
High fixed leverage is normally used by retail traders who want high flexibility with their small deposits. Keep in mind that this type of leverage can expose you to the market, and you can lose all your capital in the blink of an eye.
Dynamic Leverage
As the name shows, this leverage type is adjustable based on your trading volume, success rate, and the capital amount you have in your account. There is a reverse proportion between selecting the dynamic leverage and the positions of your trades.
In simple words, if you are planning to get higher positions in your trades, you will be allowed to choose reduced leverage, and vice versa. This type of leverage helps traders manage risk at scale instead of losing their money instantly in such trades.
High Leverage vs Low Leverage: Which You Should Choose?
Many traders get confused when they have to choose between high and low leverage options in Exness. There is a very simple rule that you can follow in this regard. You should choose low leverage if you want to stay in the field for longer because it will increase margin.
Similarly, if you have put high leverage on your trades, you can lose your money quickly because of less margin. You can understand this logic by reading the following example.
For example, if you have put low leverage on your account with capital of $100, you may lose your entire capital when the price of a specific stock rises by 10 times. However, if you have put high leverage on the same account, you may lose all your capital with 2 times moment in the stock price.
Therefore, it is suggested to choose low leverage when you are a beginner or don’t want to lose all your capital within a short period. However, if you are experienced and can manage risk manually, you can go ahead with high leverage on your trades in Exness.
How to Use Leverage in Exness?
When you are opening an account in Exness, you are asked to choose the leverage level you want to set for all your trades. You can choose from the available options and come back to adjust when the new options are available according to your account level.
Here are some steps that you can follow for using the leverage option in Exness.
Step 1. Tap the three dots given beside your Exness trading account.
Step 2. Select the leverage option from the available settings that you can get in the drop-down menu by clicking on the three dots.
Step 3. Click on the “Continue” button after selection and “Confirm” the settings when asked.
With this, you will be able to set the leverage setting for all your future trades instead of clicking on every trade to select the leverage manually.
Make More Profit on Exness with Successful Trades
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Final Verdict
From this blog, you have read how to use leverage in Exness. We have discussed the necessary types of leverage that you must be aware of along with how you can set this setting in your account.
It is time for you to check the settings of your account and adjust the leverage level to play safely in this field. In addition to this, it is highly recommended to enroll in the Forex Bab G trading course to learn advanced techniques from experienced mentors and get effective support for a successful trading journey.