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Help and support

What is leverage and margin?

What is Forex Leverage?

Leverage is the ability to control a large amount of money in the forex markets.

In our FCA jurisdiction, we offer leverage of up to 30:1 for retail clients. This means for every $1 that you have in your trading account, you can trade $30 as a retail client. 

Leverage can exponentially increase your profits as well as your losses so it's crucial that traders take care when using leverage. The larger your position size, the larger your pip value will be and therefore, the greater the impact on your profit/loss (P/L).

What is Forex Margin?

Margin means the amount of money that you need to deposit into your Account to enter into or maintain a contract with us under the Agreements.

Margin requirements are expressed as a percentage of the full amount i.e. 0.5%, 2%, 1%. You can use this percentage to calculate your maximum leverage in your trading account.

The leverage ratio differs depending on regulation and what instruments and asset class you trade. Forex tends to have a higher leverage ratio, while cryptocurrency trading is generally much lower.

Here's how your margin requirement relates to the maximum leverage applicable on a range of instruments.

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© 2025 Pepperstone Limited 
Company Number 08965105 | Financial Conduct Authority Firm Registration Number 684312

Risk warning: Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74.8% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Trading derivatives is risky. It isn't suitable for everyone and, in the case of Professional clients, you could lose substantially more than your initial investment. You don't own or have rights in the underlying assets. Past performance is no indication of future performance and tax laws are subject to change. The information on this website is general in nature and doesn't take into account your or your client's personal objectives, financial circumstances, or needs. Please read our legal documents and ensure you fully understand the risks before you make any trading decisions. We encourage you to seek independent advice.

Pepperstone Limited is a limited company registered in England & Wales under Company Number 08965105 and is authorised and regulated by the Financial Conduct Authority (Registration Number 684312). Registered office: 70 Gracechurch Street, London EC3V 0HR, United Kingdom.

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