Leverage and Margin


Traders have the option of using leverage and margin when trading CFDs at AKO Markets. The two terms are in fact intertwined, as you use your margin to create your leverage. While leverage can increase the potential return on your investments, it can also increase potential losses, so it’s imperative that you think carefully about the amount of leverage you want to use. Using leverage, both successful and unsuccessful deals are, in simple terms, amplified.


Leverage is the ratio between the amount of money you actually have to the amount of money you can trade and is usually expressed as a X:1 format. Leverage makes it possible to command much larger positions with a small amount of capital in comparison.

For example, if the leverage of your account is 30:1, this means you can trade up to 30 times the equivalent amount of base currency you have in your account. This theory is correct no matter what leverage you are using.


When you use leverage to trade on CFDs, you have to maintain a certain level of funds in your account (the necessary margin), also known as a good faith deposit. By calculating and understanding your margin requirements beforehand, you are able to apply good risk management and avoid any unnecessary margin calls resulting in the closing of a position due to a lack of margin in your account.

Margin Call

Although margin trading can help magnify potential returns on positions, leveraged trading also has increased risks. A margin call is used by brokers to inform traders that their account has depreciated to a specific value (value depends on the broker). Leveraged trades that move in the opposite direction from your prediction can rapidly drain your available capital.

Trades with leverage that move in the wrong direction can multiply quickly and drain your available trading capital much more rapidly.

Risk Disclaimer

Trading in Forex and/or CFD and/or any other financial instruments involves significant risk and may not be suitable for all investors. Trading in the financial markets may lead to a loss of some or all your original investments, and as such, you should not invest money that you cannot afford to lose. Trading on margin/leverage can work against you as well as for you. You should be fully aware of all risks involved in trading. You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience, and knowledge before deciding to trade. Please read and ensure you fully understand our Risk Policy. Cryptocurrency trading requires knowledge of cryptocurrency markets and comes with several risks, including volatile market price swings or flash crashes, market manipulation, and cybersecurity risks. Investors should conduct extensive research into the legitimacy of each cryptocurrency before investing.

*All trading involves risk. It is possible to lose all your capital.

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