Dynamic leverage is a feature that automatically adjusts your maximum leverage based on your account equity, giving you the flexibility to strengthen your trades when your equity is small and gradually scaling down leverage as your equity grows.
This means you can maximize your trading potential while keeping risk in check, enjoying high leverage on smaller accounts and safer, moderated leverage on larger accounts.
Dynamic leverage balances trading power with risk management by adjusting leverage according to account equity. With smaller equity, you gain access to higher leverage to seize opportunities, while larger equity triggers a reduction in leverage for added safety. As your equity fluctuates, the platform instantly updates your available leverage to match.
For example, if your equity doubles, the system may reduce your leverage to ensure you’re not overexposed. This adaptive approach keeps your margin requirements proportional to your position sizes.
Dynamic leverage works on a tiered model tied to your account equity. Many leading brokers implement similar structures: for instance, a trader with only a few thousand dollars might access 1:1000 leverage, whereas an account with a much higher equity is capped at 1:200 or 1:100.
The principle is simple; the more equity you have, the more conservative your maximum leverage becomes. This protects both the trader and the broker by preventing extremely large positions from being opened with very high leverage on a large account. Conversely, traders with smaller equities get the benefit of higher leverage to increase their market exposure within reasonable limits.
With dynamic leverage, zForex ensures your trading capacity scales thoughtfully as your account grows.
At zForex, we employ transparent equity tiers to set your maximum leverage. The table below outlines how leverage adjusts automatically based on your account equity:
| Account Equity | Maximum Leverage |
| $0 – $999 | 1:1000 |
| $1,000 – $2,499 | 1:800 |
| $2,500 – $7,999 | 1:500 |
| $8,000 – $19,999 | 1:400 |
| $20,000 – $39,999 | 1:300 |
| $40,000 – $74,999 | 1:200 |
| $75,000 and above | 1:100 |
Dynamic leverage is an automated system that adjusts your trading leverage according to certain criteria – most commonly your account equity. In other words, as your account equity changes, the maximum leverage you can use changes with it. This allows your leverage to be “dynamic,” scaling up or down in response to your current trading capital
The leverage is tied to equity: lower ones can use higher leverage, and higher ones have reduced leverage. This way, your leverage is always tailored to your account size and risk tolerance.
Dynamic leverage helps manage risk by aligning leverage with the size of your account, thereby preventing excessive risk-taking. When your equity is small, high leverage is available but the absolute exposure is naturally limited by your equity. As it grows, the system reduces the leverage to ensure you don’t take on disproportionately large positions
This automatic adjustment reduces the risk of overexposure and minimizes potential losses, acting as a safeguard against trading too big for your account
Essentially, it encourages responsible position sizing – you can still trade actively, but the odds of blowing up your account with one over-leveraged trade are greatly reduced. This built-in risk control makes your trading journey more sustainable in the long run.
Yes, at zForex, dynamic leverage is based on your account equity, not the specific product you’re trading. As your equity increases, your overall leverage adjusts automatically. This affects the required margin for all assets in your account, whether you're trading forex, metals, indices, or cryptocurrencies.
Dynamic leverage directly impacts your margin requirements and the exposure you can take. Margin is the amount of your own funds that must be put down to open a position – it’s inversely related to leverage. With higher leverage, the required margin is low; with lower leverage, the required margin is higher. As dynamic leverage adjusts your leverage based on equity, it means that at higher equity levels (where leverage is reduced) you will need to commit a larger margin for the same trade size than you would with a smaller account. This naturally limits your maximum exposure because your capital can only stretch so far under the increased margin requirements. For example, one analysis showed that with dynamic leverage in effect, a trader’s total exposure was capped at about 34 lots (using ~$25,000 margin) instead of 125 lots under a fixed high-leverage scenario – a dramatically lower risk exposure for the same account
In summary, as leverage scales down, your usable margin is constrained, which prevents you from taking on positions that are too large for your equity. This automatic moderation of exposure helps keep your account within safe leverage limits at all times, while still giving you plenty of trading power relative to your balance.
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