What is the maximum leverage in the EU?
For retail clients, ESMA caps it at 1:30 on major pairs, 1:20 on other currencies, gold and major indices, 1:10 on other commodities and indices, 1:5 on shares and 1:2 on crypto.
How much margin your trade ties up, how much free margin is left and how many lots your balance lets you open.
Required margin
0,00 US$
How much of your account is in use
Margin is the part of your balance the broker sets aside while the trade is open: the position value divided by the leverage. 1 lot of EURUSD at 1.10 is $110,000; at 1:30, the margin is $3,667.
Margin is not what you risk: what you lose depends on the stop and the position size. But if the margin level falls to 50%, in the EU the broker starts closing your positions.
For retail clients, ESMA caps it at 1:30 on major pairs, 1:20 on other currencies, gold and major indices, 1:10 on other commodities and indices, 1:5 on shares and 1:2 on crypto.
It is your equity divided by the margin in use, as a percentage. With $10,000 and $2,000 of margin it is 500%. Below 100% you can’t open more trades, and at 50% the broker closes positions (in the EU).
Not by itself: risk is set by the position size and the stop. Leverage only decides how much margin that position ties up; the danger is using it to open positions bigger than your stop allows.