Oanda Leverage

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Leverage is the ability to enter into trades larger than your account balance by borrowing money from your broker. You will therefore not need to deposit the full value of the trade you wish to open. With all this in place, you are in a position to generate massive profits, but also massive losses. Since the risk of incurring losses is also great, the broker will take a form of security called a margin to act as collateral.

In this post, we will look at how Oanda can help you gain the benefits of leverage and avoid the accompanying losses. We will also discuss how leverage differs in different countries to allow you to make an informed decision about embracing its risks and trying it.

Oanda US Leverage

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Oanda leverage ratios will depend on the country in which you are trading and the type of account that you have. Here are US leverage ratios for major currency pairs, crosses, and minor currency pairs:

Standard Account Pro Account

Major Currency Pairs

50:1

50:1

Minor Currency Pairs

33.3:1

33.3:1

Crosses

20:1

20:1

Oanda UK Leverage

The leverage ratios in the UK are much higher than those in the US because there is no maximum leverage permissible. In the US, the maximum limit is 50:1, but since Oanda allows up to 200:1, people in the US can obtain the maximum leverage limit.

These are the leverage ratios for the Standard and Pro Oanda accounts:

Standard Account Pro Account

Major Currency Pairs

200:1

100:1

Minor Currency Pairs

30:1

200:1

Crosses

200:1

200:1

Oanda Leverage for Other Countries

Here are Oanda leverage ratios for different countries:

Australia:
Standard Account Pro Account

Major Currency Pairs

20:1

30:1

Minor Currency Pairs

20:1

30:1

Denmark:
Standard Account Pro Account

Major Currency Pairs

20:1

30:1

Minor Currency Pairs

20:1

30:1

Crosses

20:1

20:1

Canada:
Standard Account Pro Account

Major Currency Pairs

33.3:1

33.3:1

Minor Currency Pairs

4.3:1

4.3:1

For the Canadian market, the ratios vary widely between major and minor currency pairs, and remain inconsistent among minor pairs. You can consult Oanda to find out more details about the specific pair you would like to use for your trade.

FAQ

What Are Margin Rates and Leverage Ratios?

A margin rate goes hand in hand with margin tiers. Margin tiers categorize positions into different levels of descending sizes of positions. The higher the level, the more the margin rate. Therefore, the larger the size of your position the larger your margin rate. The leverage ratio helps you see how much the trade size has been magnified. It is determined by the broker’s margin.

Should I Trade With Leverage?

You should trade with leverage if you know enough about how it works, and are in a position to handle the risk involved. Trading with leverage is an amazing strategy, but it is also high risk and your losses could easily end up exceeding your profits. It would be best if beginners tried less risky techniques at the beginning of their trading journey.

How Much Leverage Does Oanda Give You?

Oanda leverage goes up to 200:1. However, this value may be limited by the country you live in and the currency pair you are using to trade. For example, in the US the maximum leverage limit is 50:1. If a US citizen would like a leverage ratio higher than that, then they would need to trade on a platform that is non-US based. However, as explained before, if you would like a higher leverage ratio you need to be prepared for the risk involved.

What is the Margin Requirement in Oanda?

The margin requirement in Oanda is 50% of the margin needed to place a trade, a percentage that must be maintained throughout the trade. If the funds in the account drop below 50%, then the positions the account is handling will be closed in what is known as a margin closeout. You may be warned about the margin closeout to give you a chance to replenish funds. But in highly volatile markets, this may not be possible and your positions may be closed without notice.

Team that worked on the article

Mikhail Vnuchkov
Author at Traders Union

Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.

The area of responsibility of Mikhail includes covering the news of currency and stock markets, fact checking, updating and editing the content published on the Traders Union website. He successfully analyzes complex financial issues and explains their meaning in simple and understandable language for ordinary people. Mikhail generates content that provides full contact with the readers.

Mikhail’s motto: Learn something new and share your experience – never stop!

Olga Shendetskaya
Author and editor at Traders Union

Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.

Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.

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