Leverage
Leverage allows traders to use a small portion of capital to expand their market exposure. This can amplify both profits and losses, offering a dynamic approach to trading.
What is Leverage
By using leverage, investors can amplify their account holdings. For example, an investor depositing $1,000 and using 100x leverage can hold up to $100,000 in notional value products.
Since the actual asset is only $1,000, to avoid a negative balance, the trading system will force liquidation when account equity falls below 50% of the used margin. Using high leverage means higher exposure, and potential gains and losses are amplified proportionally.
Advantages of Using Leverage
Leverage is a powerful tool for traders, enabling them to expand their influence in the financial markets and optimize capital efficiency while investing a smaller amount.
Expanded Market Exposure
Allows you to control a larger position size than your invested capital, thereby expanding market exposure.
Amplified Profits
Can be used to make full use of your available capital, maximizing returns.
Access to Larger Markets
Opens the door to larger markets and assets that may otherwise be inaccessible with limited funds.
How Traders Use Leverage
Forex/Metals
| Lots | Leverage Limit |
|---|---|
| 0 - 0.5 | 5000 |
| 0.5 - 2 | 1000 |
| 2 - 5 | 500 |
| 5 - 10 | 200 |
| 10 - 20 | 100 |
| 20+ | 50 |
Crypto/Crude Oil
| Symbol | Fixed Leverage |
|---|---|
| WTIUSD, BRTUSD | 50 |
| BTCUSD, ETHUSD, LTCUSD | 100 |
| BCHUSD, XRPUSD, ADAUSD, EOSUSD, DOTUSD, DOGEUSD, LINKUSD | 50 |
| MANAUSD, SANDUSD, MATICUSD, AXSUSD | 50 |
Indices
| Symbol | Fixed Leverage |
|---|---|
| US30, US100, US500, UK100, CHINA50, HongKong50, AU200, AP225 | 100 |
Cross Crypto
| Symbol | Fixed Leverage |
|---|---|
| XAUBTC, XAUETH, XAGBTC, XAGETH, WTIBTC, WTIETH, BRTBTC, BRTETH, BTCEUR, BTCGBP, BTCJPY, ETHJPY | 100 |
Examples
Margin Trading:
Example 1: With 200:1 leverage, a trader only needs to invest $1,000 of their own funds to control a position worth $200,000.
Example 2: With 500:1 leverage, a trader only needs to invest $1,000 of their own funds to control a position worth $500,000.
Important Leverage Information
Liquidity Leverage Rules
XNCE adopts liquidity leverage rules, dynamically adjusting leverage based on your actual position lots (total of all open orders), calculated in tiers—different lot ranges apply different leverage. This way, your leverage only decreases gradually as trading volume increases, and is not suddenly reduced due to account equity growth, avoiding the risk of forced liquidation from insufficient margin.
Reducing Leverage
XNCE's default leverage is 5000x. If you feel this leverage level carries more risk than you can bear, you can apply to adjust it to 1000, 500, 200, or 100 leverage.
Negative Balance Protection
NCE strictly enforces a regulated negative balance protection policy; investors do not need to repay losses exceeding their own funds. When the market gaps, excessively high leverage is more likely to cause a negative balance. If a client experiences two negative balances within the same month, the maximum leverage will be limited to 200, and it will take 30 days to restore to the normal level.
Leverage Abuse
For traders who place orders that do not meet daily trading size before weekly close and major economic data releases, intending to profit illegally through the negative balance protection policy, the account will be disabled. All consequences, such as withdrawal delays or even profit cancellation, must be borne by the illegal trader themselves.
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