What is The Difference Between Maximum Energies Leverage and Used Energy Trading Leverage?

You should note that there is a difference between maximum energies trading leverage ( energies leverage given by your broker which is the highest energies leverage you can trade with if you choose to) and used energies trading leverage ( energies leverage depending on the lots you have opened/open trade positions). One is the broker's (Maximum) and other is trader's (Used). To explain this concept we shall use energies example above:

If your energies broker has given you 100:1 Maximum energies leverage, but you only open trading lots of 100,000 dollars then Used energies leverage is:

100,000 dollars : 10,000 dollars (your money)

10:1 Used Energies Trading Leverage

You have used 10:1 energies leverage, but your maximum energies leverage is still 100:1. This means that even if you are given 100:1 Maximum energies trading leverage or 200:1 Maximum energies leverage , you do not have to use all of it. It is best to keep your used energies leverage to a maximum of 10:1 but you will still select 100:1 maximum leverage option for your energies account. The extra energies leverage will give you what we call Free Energies Trading Margin, As long as you've some Free margin on your trading account then your energies trades will not get closed by your energies broker because this margin requirement will remain above required level.

When it comes to energies trading one of your energies rules: energies money management guidelines on your energies plan should be to use below 5:1.

Energies Trading Leverage Example

The example illustrated and explained below, the set energy leverage ratio is 100:1, the margin which is 1% is $2683.07, therefore the total amount controlled by the trader is: $268,307 - this is because with this leverage the trader has used little of his money & borrowed the rest, with this set at 100:1, trader is using 1 % of their capital, this 1% equals to $2683.07, if 1% equals to $2683.07 then 100% is $268,307

MetaTrader 4 Energies Platform - What is The Difference Between Maximum Energies Leverage and Used Energies Trading Leverage?

In the above image example, the trader is using $2683.07, total controlled amount is $268,307, but account equity is 16,116.55, therefore used energy leverage is ( $268,307 divide by 16,116.55 ) = 16.64 : 1

16.64 : 1

In the energies trading account above even though the maximum energies leverage set energies trade leverage is 100:1, Used energies leverage is 16.64 : 1