PipFarm dynamically reduces leverage, i.e. increases margin requirements, as your net exposure to each trading instrument increases. The dynamic leverage settings are grouped by asset class but are applied per symbol.

Dynamic leverage is a margin calculation feature that dynamically decreases leverage based on exposure. The exposure tiers are calculated per symbol and are the same for all trading accounts. Accounts below 100k are unlikely to experience any dynamic leverage adjustments.

Dynamic leverage tiers are based on your net exposure of a symbol converted to USD. The table below shows our dynamic leverage tiers for trading precious with standard leverage.

Suppose the price of XAU/USD is $3,000, and you open a 200 oz position. Your exposure is $400,000, which falls within tier 1. Therefore, the margin is calculated using 1:20 leverage, and the required margin is $30,000.

Suppose you open another 200 oz position of XAU/USD at $3,000 per ounce. Your total XAU/USD exposure increases to $800,000, which falls into tiers 1 and 2. The first $500,000 of exposure will use 1:20 leverage, and the remaining $300,000 will use 1:10 leverage, meaning the margin required is $55,000. Another way of looking at it is that the leverage for this position becomes 1:14.5.

Since this is applied per symbol, it won't affect the leverage the same for other instruments in the same asset class category.

We set maximum exposure limits per symbol, which are categorised by asset class.