How is the leverage ratio determined in CFD trading?
Leverage in PU Prime comes in two primary forms: account leverage and fixed leverage.
Account leverage: The ratio you have selected with your trading account, default set in 1:500.
Fixed leverage: Refer to specifically for each product leverage and not following to account leverage. This can be found in "Margin Percentage" under each product "Specification"
The leverage ratio calculation depends on the leverage type shows in "Margin Calculation Mode" which can be found in product "Specification". Below shows the calculation formula for each margin calculation mode.
Forex : Contract size * Lot * Margin Percentage / (Account Leverage)
CFD-Leverage : Contract size * Lot * Open Price *Margin Percentage / (Account Leverage)
CFD : Contract size * Open Price * Lot* Margin Percentage
*Note: The calculation result would be in margin currency. If it is different from your account currency, the system would automatically convert to your account currency.