IG Markets Leverage

What Is leverage trading and margin requirement?

IG Markets Review

In common terms, “to leverage” means to use something to maximum advantage, to its fullest potential. In trading, the meaning is quite the same: when you leverage your trade, it means you set yourself up to get the maximum profits possible from whatever funds you have. Leverage is a way to increase the value of smaller amounts of money and use the higher value to trade so that you can gain higher returns.

For example, say you have $400 but want to gain higher returns than the $400 could ever offer you. You will use a broker offering leverage of maybe 10:1. With their backing, you will manage a position of up to $4000 by placing a deposit of only $400.

So, what about margins?

The margin in this example is $400. Therefore, the margin is the minimum amount of money you need to open your position. To calculate your margin, you will take the value of the position you intend to open and divide it by the higher number in the ratio. For example, if the position you want to open is $5000 and the ratio is 10:1:

$5000/10 = $500

Therefore, you will need a minimum of $500 to use that leverage to open a position.

IG Markets EU leverage

It is critical to comprehend what leverage is and how to use it sensibly, particularly in areas where it is restricted. The maximum leverage (1:30) for CFDs and other instruments is standardized and strictly capped in jurisdictions, including the EU, the UK, and Australia. Retail traders in Europe are limited to a leverage of 1:30.

IG Markets CFD and Forex Leverage

Even though IG Markets allows traders to use leverage up to 1:200, which allows them to trade with lower margin requirements and lower required capital for opening orders, the EU has different limits on CFD leverage. In the EU, leverage for CFDs ranges from 10:1 to 20:1. For major currency pairs, the maximum leverage for Forex trading is 30:1 and 20:1 for non-major currency pairs.

Does IG Markets offer crypto leverage?

Yes, IG Market provides leverage for cryptocurrencies. Generally, there is a maximum leverage of 2:1 when trading cryptocurrencies.

Can I trade stocks with leverage at IG Markets?

Yes. IG Markets provides margin trading, or leverage, for various financial instruments, including stocks, just like many other online trading platforms. By using leverage when trading stocks, traders could have the ability to regulate a larger position size with less capital by increasing their exposure to price fluctuations. The maximum leverage available for stock trading and the particular terms and conditions may differ.

IG Markets US leverage

IG Markets is registered with the CFTC (U.S.), NFA (U.S.), and FCA (U.K.), and it does accept residents or nationals of the United States, but only for forex. Regulators in the United States have established a maximum leverage of 1:50 for forex trading. The leverage ratio for minority and exotic assets is 1:20. There is a 50% minimum margin requirement for margin trading in the US.

IG Markets UK leverage

Leverage trading rates for retail clients are restricted by the Financial Conduct Authority (FCA) in the United Kingdom to 1:30 (or x30). Brokers can provide leverage up to 1:500 if you are eligible for a professional trading account. The same holds for the other member states of the EU. But remember that doing so will increase your trading risk significantly, so be sure you are ready to accept that.

G Markets leverage international

In countries where IG Markets leverage is not regulated, the maximum leverage traders can use is between 1:20 and 1:200. In the United States, the maximum available leverage is 1:50, while in the UK and other European Union countries, the highest leverage limits at IG Markets are 1:30 and 1:20, respectively.

How to get high leverage on IG Markets?

Since IG Markets offers a variety of account types with varying levels of leverage, you are free to select any of them with high-leverage privileges. Again, obtaining high leverage may depend on your trading capital, experience, and trading volume.

Additionally, your wager size and margin amount determine the leverage size. For example, a maximum leverage of 20:1 (UK) corresponds to a minimum margin requirement of 5% for a trade. To fully utilize the maximum available leverage, increase the bet size (measured in pounds or points in spread betting or the number of contracts in CFDs) until the trade's margin requirement reaches the highest allowable amount based on your account size. In contrast, you would lower the bet size to the platform's minimum if you would rather trade with little leverage.

IG Markets leverage levels by instrument

While IG market leverage differs based on location, each instrument you want to trade has its own maximum leverage. For example, in the UK, the leverage for trading instruments varies between retail traders and professional traders.

While the above leverage levels are for traders in the UK, you can contact IG customer care to verify the leverage level for instruments you can trade from your present location.

How does leverage work?

When trading, leverage allows you to open a position worth much more than the money you deposit. It indicates that your broker is putting up the majority of the capital, with you contributing a small portion of the trade size as a deposit to open a larger position.

For example, if you put $3,000 of your own money into a currency trade, you can only make trades with that amount if you do not use leverage. If you would like to use leverage, say 5x leverage, you can control a position size of $15,000 (5 * $3,000).