Leverage & Margin

Guide to our Leverage and Margin Rules

Understand MH Markets' margin
requirements and leverage policies

MH Markets Leverage
and Margin Rates

Leverage and margin levels differ by instrument, trade volume, and
trading account (Cent, Standard, ECN, and Prime). For full product details,
please refer to the requirements below.

Leverage & Margin Calculation

What is Leverage in trading?

Leverage is a tool provided by brokers that allows you to control a large position in the market with a significantly smaller amount of your own capital. It is expressed as a ratio (e.g., 1:100) and magnifies both your potential profits and potential losses. Essentially, it's a loan from your broker to increase your trading buying power.

Example:

With a $1,000 balance and 1:100 leverage, you control a $100,000 position.
A 1% price move equals a $1,000 profit or loss.

Note: Leverage can magnify both profits and losses. If the market moves against your position, you could lose more than your initial investment.

How Leverage Affects Margin and Position Size

What is Margin in trading?

Margin is the amount of capital you need to deposit with your broker to open and maintain a leveraged trading position. Think of it as a security deposit or a good-faith collateral that ensures you can cover potential losses. It is not a transaction fee but rather a portion of your account equity that is "set aside" and locked while your trade is open.

Example:

To open a €100,000 EUR/USD trade with 1% margin, you need €1,000 as collateral. This €1,000 is your margin requirement.

If your trade moves against you and losses approach this €1,000, you may receive a margin call or be stopped out

Note: A lower margin requirement means higher leverage, which can magnify both potential profits and potential losses. Always manage your risk carefully when trading on margin.

Fixed Leverage vs. Floating Leverage at MH Markets

At MH Markets, we employ two distinct leverage models depending on the instrument you are
trading. Understanding the difference is key to effective risk management.

Fixed Leverage

Clients can select a fixed leverage ratio of up to 1:500 for their account directly via the CRM portal, providing consistent trading conditions.

Floating Leverage

Our floating leverage model automatically adjusts ratios based on real-time equity. For full details on the tiered structure, please refer to our official announcement below:

Important Update: Auto Leverage Adjustment for All MT Servers

Important Update: Auto Leverage Adjustment for Cent Accounts for All MT Servers

Policy Overview

Leverage Adjustment Policy During Market Volatility

MH Markets reserves the right to adjust leverage under any circumstances. Such adjustments shall be subject to the Company's final determination, and the Company reserves the right to interpret matters related to leverage.

How to Calculate Margin Requirements

Your margin requirement is determined by three key factors:

The specific leverage set for your
account and the instrument.

The size of your
position.

The base currency of your
trading account.

Frequently Asked Questions

What happens if I don't have enough margin to open a new trade?

If your account does not have sufficient free margin to meet the required margin for a new position, your order will be rejected by our trading system. For existing positions, if the market moves against you and your margin level falls critically low, you may receive a margin call and be at risk of having positions automatically liquidated.

How can I find out when a high-impact news event is scheduled?

We recommend that all traders monitor Major financial news websites or the economic calendar on MH Markets website, which lists the key events in the global markets that are likely to cause volatility.

How should I prepare for periods of high market volatility?

During periods of high volatility, it is recommended to closely monitor the economic calendar and maintain a healthy margin buffer to open new positions.

What is the difference between fixed and floating leverage?

The main difference is that fixed leverage stays the same no matter how much your account balance changes, giving you predictable trading conditions. Floating leverage, however, automatically adjusts based on your account's size; as your real-time equity grows, your leverage decreases to help manage risk, and if your real-time equity falls, your leverage may increase.

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Leverage & Margin

Understand MH Markets' margin
requirements and leverage policies