What's The Difference Between Maximum Leverage & Used Leverage?

You should not that there is a difference between maximum leverage ( leverage given by your broker which is the highest leverage you can trade with if you choose to) & used leverage ( trading leverage depending on lots you've opened/open trade positions). One is broker's (Maximum) & other is trader's (Used). To explain this concept we shall use trading example above:

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

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

10:1 Used Leverage

You have used 10:1 xagusd leverage, but your max leverage is still 100:1. This means that even if you're given 100:1 Maximum trading leverage or 200:1 Maximum trading leverage, you don't have to use all of it. It's best to keep your used leverage to a maximum of 10:1 but you'll still choose 100:1 maximum leverage option for your account. The extra trading leverage will give you what we call Free Silver Margin, As long as you have some Free margin on your account then your trades won't get closed by your xagusd broker because this margin requirement will remain above required level.

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

XAGUSD Leverage Example

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

What's The Difference Between Maximum Leverage & Used Trading Leverage?

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

16.64 : 1

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