What is tiered leverage?
Tiered leverage is a mechanism where leverage ratios are applied based on position size. As the position size increases, the applicable leverage decreases in order to manage overall risk.
The current rules are as follows:
Viewing Tiered Leverage Rules
Tiered leverage rules is available to be viewed on APP/Web. When trading XAUUSD247 on platform, clients may click "View More" on the trading page to view the applicable tiered leverage rules.
*Note: Tiered leverage rules are currently not available on MT5.
Tiered Leverage Calculation
Under the tiered leverage mechanism, the position is divided into different volume tiers. The volume-weighted average price (VWAP) is calculated for each tier, and the applicable leverage is applied based on the relevant position-size range.
The margin required for each tier is then added together to determine the total margin and the position's effective leverage.
Example 1: Long Position
Open an 80-lot long position.
- The entire 80 lots fall within the 1:100 leverage tier.
- The effective leverage for the position is approximately 1:100.
Example 2: Short Position
Open a 60-lot short position.
- The entire 60 lots fall within the 1:100 leverage tier.
- The effective leverage for the position is approximately 1:100.
Example 3: Additional Long Position
Open an additional 100-lot long position.
- The additional 100 lots fall within the 1:75 leverage tier.
- The effective leverage for this additional position is approximately 1:75.
