Leverage and margin explained
Leverage lets you open a position larger than the money in your account. Margin is the amount you must hold to open and keep that position. This page shows how the two fit together.
The details follow the Exness Help Centre (checked 2026-10-13) and a consumer advisory from the CFTC. Exness can change its rules without notice. A position that is large compared with your funds means larger losses as well as larger gains.
Is leverage extra money from the broker?
At Exness, leverage is the ratio between your equity and the capital Exness provides, written like 1:200. It affects how much margin an open position needs, and the CFTC says it makes both profits and losses larger.
What leverage means
If I need less margin, am I taking less risk?
No. Exness says high leverage can allow larger positions with less margin. Larger positions relative to equity increase the risk of a stop-out after a small price move.
- The CFTC futures glossary describes leverage as controlling a large amount of a product or security with relatively little capital. Details can differ for OTC forex and CFDs.
- At Exness, leverage is the ratio between your equity and the capital Exness provides. It is written as 1:200, 1:2000 or 1:Unlimited, and it affects the margin needed for an open position.
- At Exness the lowest setting is 1:2, and leverage cannot be turned off.
A CFTC advisory gives this example: with a 2% margin requirement, a position of 100,000 dollars can be opened with 2,000 dollars. It warns that this high leverage makes profits and losses larger, that you may have to add funds or close the position if the market moves against you, and that clients trading OTC forex may be responsible for losses beyond their first deposit.
Sources: CFTC glossary, CFTC forex advisory, Exness Help Centre, Leverage (checked 2026-10-13).
Calculating variable margin
A broker asks you to hold a minimum amount of margin to open and keep a position. At Exness this is the required margin, and it is calculated in your account currency.
For instruments with variable margin, Exness gives this formula:
required margin = lots x contract size / leverage
Exness's example: 2 lots of EURUSD at 1:2000 is 2 x 100,000 / 2000 = 100 EUR. That figure is in EUR, the base currency of the pair. The Exness article does not say which rate it uses to convert it into your account currency.
For the same variable-margin position, higher applied leverage means less margin and lower applied leverage means more.
The leverage that applies can change when your equity changes and during major economic news. At Exness, applicable leverage can change around weekend and holiday market breaks. The timing depends on the instrument and can change. See how Exness leverage works.
Source: Exness Help Centre, Margin (checked 2026-10-13).
Fixed margin
Does the leverage setting change the margin for every instrument?
No. At Exness, exotic currency pairs, energies and some metals and indices have a fixed margin set per instrument, and the leverage setting does not change it.
For fixed-margin instruments, Exness gives this formula:
required margin = lots x contract size x margin rate
Exness's example: 0.5 lot of GBPSEKm with a margin rate of 1% is 0.5 x 100,000 x 0.01 = 500 GBP.
Exness states that fully hedged orders require 0% margin and that partially hedged orders require margin on the unhedged portion. The Margin article lists which instruments use which type, so check it for the instruments you trade.
Source: Exness Help Centre, Margin (checked 2026-10-13).
Equity, margin and free margin
Exness gives these relations:
- Equity = balance plus or minus the floating profit or loss, plus the swap.
- Equity = required margin + free margin.
The margin level compares the two: (equity / required margin) x 100. A fall in equity from losses, or a rise in required margin, lowers it. The levels at which a margin call and a stop-out happen are explained in margin call and stop-out.
Source: Exness Help Centre, Common trading terms (checked 2026-10-13).
Why larger positions raise the risk
Exness says that high leverage allows a large position with little margin, but a small price move can then cause a stop-out. Lower leverage increases the margin required for the same variable-margin position. Reducing position size reduces exposure to a given price move. The CFTC advisory adds that clients trading OTC forex may be responsible for losses beyond their first deposit.
To estimate the margin for a position, use the margin calculator. For the loss you accept on a trade, use the lot size calculator. The result of either is an estimate, not a recommendation.
Source: Exness Help Centre, stop-out article (checked 2026-10-13).
Does higher leverage always mean less margin?
For the same variable-margin position at Exness, higher applied leverage reduces the calculated margin. A higher account setting does not guarantee higher applied leverage. Fixed-margin instruments are unaffected by the setting.Can I turn leverage off?
Not at Exness. The lowest setting is 1:2, and leverage cannot be disabled.How is margin calculated?
For variable margin Exness gives: lots x contract size / leverage. For example, 2 lots of EURUSD at 1:2000 is 2 x 100,000 / 2000 = 100 EUR. For fixed margin the formula is lots x contract size x margin rate.What is the difference between leverage and margin?
Exness describes leverage as the ratio between your equity and the capital it provides, expressed as a ratio such as 1:200. In OTC forex, margin is the minimum amount a broker requires to open and maintain a position.Last reviewed 2026-10-13