What is leverage?

A remarkable feature of foreign exchange trading is that you can use "leverage" to trade, but if traders want to trade, they still need to have enough trading margin in the trading account. In short, leverage allows you to trade much larger than the amount in the account. If the same number or amount of transactions are carried out, the higher the leverage, the lower the margin requirement.

How to apply leverage?

If you have an amount of $10000 in your TNG Company trading account, and the leverage is 100 times, if you only want to use 10% of the account amount, that is, $1000, as a transaction margin, you can still conduct a transaction worth $100000 ($1000x100), because in this transaction, TNG Company provides you with transaction credit similar to credit card, which is the role of leverage. If you do not use leverage in this transaction, you may only be able to conduct transactions worth $1000

Therefore, it can be said that the use of leverage makes it possible to earn larger profits by using a smaller amount of investment.


 

Risk monitoring

Since leverage will amplify both profit and loss, it is necessary to understand the risk of using highly leveraged foreign exchange trading. Investors need to choose the appropriate leverage level according to their own trading style

Many foreign exchange traders will use expert advisor (EA), an automatic trading program, and many EA programs will do appropriate trading volume according to the account capital limit. However, not all EA programs will have effective fund management tools, so for traders, It is still very important to manually check the situation of your trading account and timely add trading margin.

The increase of leverage will bring greater trading risk, and sometimes large losses are only due to small market fluctuations.

Customers can effectively monitor and control their transaction risks through TNG Company's MetaTrader 4 platform. MT4 platform will calculate the margin held by customers according to the margin requirements of customers' transactions

There are capital requirements for opened positions and new positions. However, as stated before, it is the customer's own responsibility to continuously check whether the positions are safe and reasonable. If the net value of the account is lower than the margin requirement, a warning notice email for margin call will be sent. In order to reduce your trading risk, the existing positions of the trading account may be closed.

 

Important announcement

In view of the huge uncertainty of the money market and the potential huge fluctuation of the market, and in order to protect the transaction safety of our customers, the maximum leverage we currently provide is 500:1. We will also continue to monitor leverage and make timely adjustments according to market conditions


TNG Company's trading leverage ratio

The customer's default trading leverage is 1:100. Adjust the maximum trading leverage to 1:500 according to the account balance and your credit situation..

We suggest that you fully understand the concept of trading leverage and its impact on your exchange before trading, and select the appropriate leverage ratio according to your needs to reduce your account risk.

Please note that some currencies may require a higher margin rate, which is independent of your account leverage ratio. Some currencies may have fixed leverage, while others (such as rare currencies) may require a margin rate of up to five (5) times the base currency.

TNG Company lever list

Choosing TNG Company's foreign exchange trading platform, we provide traders with a variety of leverage options. However, following the general standard, the leverage ratio of all newly opened trading accounts is set to 100:1 by default.

High leverage ratio is not suitable for every trading style, and the high risk it brings is not acceptable to every trader. In order to better help traders achieve risk control, TNG Company has made the following leverage ratio settings according to the capital scale of the trading account.

Optional leverage ratio Minimum net account value Maximum net value of account
500:1 $500 $10,000
400:1 $500 $50,000
300:1 $500 $100,000
200:1 $500 $250,000
100:1 $500 $500,000

 

Apply for lever change online

Please log in " My Account “ Fill out the leverage application form and request to change the leverage ratio in your TNG trading account.

 

(*) all trading accounts in TNG Company are set to 100:1 standard leverage by default. This is the appropriate level of trading in the foreign exchange market that we recommend to our customers. We are regulated by ASIC, so we must ensure that all parameters of our customer accounts are appropriate, taking into account the risks involved.

By submitting the lever change application form, you have confirmed and understood that changing the lever may increase your trading risk, make your loss greater than the potential, and is not limited to the margin you deposit. Therefore, you have a deep understanding that adjusting leverage may lead to serious losses in the account. TNG Company will not provide you with investment or personal advice. Foreign exchange margin trading has high risk, so it is not suitable for every investor. Before deciding to participate in foreign exchange trading, you should carefully consider your investment objectives, experience level and risk tolerance.

Please note that different levers require different margins. You need to remember that if your trading account changes to a new leverage ratio, your margin will also change according to the new leverage ratio. According to our risk judgment, TNG Company reserves the right to change the leverage ratio of your account at any time.


tng-customer-service