Trade planning
Leverage calculator
The leverage an account allows is a ceiling. Effective leverage is what you actually use: the total value of your positions divided by your equity. Two traders on the same 30:1 account can use very different effective leverage, and with it very different risk.
Result
- Effective leverage
- 11.19:1
- Position value
- 111,930.00 USD
- Largest position at 30:1
- 2.68 lots
How it is calculated
Effective leverage = notional value in account currency ÷ equityLargest position (lots) = equity × leverage ÷ (contract size × price × quote-to-account rate)
Worked example
1 lot of EUR/USD at 1.1253 (112,530 USD) with 10,000 USD equity: effective leverage 11.25:1. At 30:1, the same equity allows up to 2.66 lots.
Assumptions and practical examples
Effective leverage = total position notional in the account currency ÷ account equity. An illustrative 100,000 USD exposure against 5,000 USD equity gives 20:1 effective leverage, even if the account permits a larger maximum.
A broker's offered leverage sets a margin rule; it does not describe how much exposure you have actually opened. This arithmetic does not model portfolio offsets or establish a safe level of leverage.
Questions
What is a safe effective leverage?
That depends on your strategy and risk tolerance. Higher effective leverage means a smaller price move can wipe out more of your equity.
Why is the largest position rounded down?
Rounding up would need slightly more margin than your equity allows.
Does equity include open profit and loss?
Yes. Equity is the balance plus or minus the result of open positions, so effective leverage rises as losses grow.
Results are estimates for education; your broker's contract specification and prices decide the real values. Trading leveraged products carries a high risk of losing money.