Understanding Dynamic Leverage
Dynamic leverage is a mechanism that helps you manage risk better when trading. It adjusts leverage in real-time based on the size of your positions.
For small positions, leverage increases for better use of your margin and potentially bigger returns.
For larger positions, leverage decreases, limiting your exposure and reducing risks.
This allows your trading strategy to remain flexible, adapt to market changes while making the most of market opportunities.
Where You Can Use Dynamic Leverage
Dynamic leverage is exclusively available on the Tickmill Trader and MT5 platforms across all account types, including Demo, and is applicable only to specific instruments.
Dynamic Leverage Instrument Overview
Dynamic Leverage Tiers and Margin Requirements
The table below shows how dynamic leverage adjusts based on your position size, affecting the margin you must have in your account. Margin requirement represents the funds you need to open and maintain positions. You can also use the trading calculator to find out your required margin.
| Lots - Forex | Lots - Gold (XAUUSD & XAUEUR) | Margin Requirement | Maximum Leverage |
| 0 - 2 | 0 - 1 | 0.1% | 1:1000 |
| 2.01 - 200 | 1.01 - 100 | 0.2% | 1:500 |
| 200.01 - 400 | 100.1 - 200 | 1.0% | 1:100 |
| 400.01+ | 200.01+ | 3.3% | 1:30 |
| Lots - Oil (XTI Brent) | Margin Requirement | Maximum Leverage |
| 0 - 1500 | 0.5% | 200 |
| 1500.01-5000 | 1.0% | 100 |
| 5000.01-15000 | 2.0% | 50 |
| 15000+ | 10.0% | 10 |
| Lots - BTCUSD | Lots - ETHUSD | Margin Requirement | Maximum Leverage |
| 0 - 3 | 0 - 70 | 0.5% | 200 |
| 3.01 - 10 | 70.01 - 250 | 1.0% | 100 |
| 10.01 - 30 | 250.01 - 750 | 2.0% | 50 |
| 30.01+ | 750.01+ | 20.0% | 5 |
| Lots - US30, USTEC, DE40 | Margin Requirement | Maximum Leverage |
| 0 - 15 | 0.5% | 200 |
| 15.01-50 | 1.0% | 100 |
| 50.01-150 | 2.0% | 50 |
| 150+ | 10.0% | 10 |
Note: Leverage ratios are subject to adjustment based on market conditions.
Margin Calculation Example
Example of trading XAUUSD at a market price of $2,355 with dynamic leverage on a USD trading account.
| Lots | Applicable Leverage | Margin Calculation | Total Margin Requirement |
| 1 | 1:1000 | 1 x 100 x 2,355 / 1000 = 236 | $236 |
| 2 | 1:1000 & 1:500 | 1 x 100 x 2,355 / 1000 + 1 x 100 x 2,355 / 500 = 236 + 471 | $707 |
| 150 | 1:1000, 1:500, & 1:100 | 1 x 100 x 2,355 / 1000 + 99 x 100 x 2,355 / 500 + 50 x 100 x 2,355/ 100 = 236 + 46,629 + 117,750 | $164,615 |
| 250 | 1:1000, 1:500, 1:100, & 1:30 | 1 x 100 x 2,355 / 1000 + 99 x 100 x 2,355 / 500 + 100 x 100 x 2,355 / 100 + 50 x 100 x 2,355 / 30 = 236 + 46,629 + 235,500 + 392,50 | $674,865 |
Note: The figures are rounded up to the nearest whole number.
Margin requirement calculation: Lot size x Contract size x Instrument price / Leverage
Margin requirement calculation: Lot size x Contract size x Instrument price / Leverage
Frequently Asked Questions
1. Can I use dynamic leverage on all instruments?
Dynamic leverage applies to specific instruments exclusively on the Tickmill Trader and MT5 platforms. Check the instrument table above for detailed information.
On the MT5 platform, when trading any of the instruments included in the table, dynamic leverage will align with the MT5 account leverage you selected.
On the Tickmill Trader platform, dynamic leverage starts at 1:1000 for specific forex pairs and gold (XAUUSD, XAUEUR) and 1:200 for cryptocurrencies (BTHUSD, ETHUSD). It then adjusts automatically as your exposure changes.
Static leverage applies to all other instruments and to the MT4 platform.
2. How does dynamic leverage work?
Dynamic leverage adjusts in real-time based on the size of your open positions. 1:1000 is the maximum actual leverage available for certain position sizes and instruments. Refer to the tables above for more information.
On the MT5 platform, if you select lower leverage than the maximum (1:1000), then the margin requirements will increase proportionally.
For example:
If your leverage is set to 1:500, the margin requirements will be doubled compared to those with 1:1000 leverage.
If your leverage is set to 1:100, the margin requirements will increase ten times compared to those with 1:1000 leverage.
These adjustments help keep your risk management consistent, no matter what leverage you choose.
Examples based on 1:500 account leverage:
For Instruments with Dynamic Leverage:
If you buy 2 contracts of XAUUSD, then your required margin will be calculated as follows:
1 100 2355 / 500 + 1 100 2355 / 250 = $471 + $942 = $1,413
For Instruments with Static Leverage:
If you buy 1 contract of XAGUSD, then your required margin will be calculated as follows:
1 5000 30 / 62.5 = $2,400
Note: The examples above are only applicable to the MT5 platform.
3. Why is dynamic leverage important?
Promotes responsible trading by adjusting leverage according to position size and encouraging careful risk management.
Protects your account, helping to prevent significant losses by avoiding overly large positions that could lead to a margin call.
