Leverage is the biggest advantage trading online in FX and CFD.
It means that the broker gives the trader a credit to open bigger deals than what the trader would be able to if he would trade on the actual asset.
The maximum amount of leverage is decided by the regulator , for example:
- in the Australian regulation(ASIC) clients can trade with leverage up to 1:500
- In the Belize regulation (IFSC) clients can trade with leverage up to 1:200
- Under Cyprus regulation(CySEC) for clients in the EU region leverage is allowed up to 1:50
With exceptions clients with experience in trading can be allowed filling a special form to have higher levels of leverage depends on the regulator