What is leverage in Forex Trading, What is the best leverage in Forex

Available 24/5, the live chat service is perfect for quick questions, troubleshooting, and immediate help with trading operations. This convenient support option ensures that traders can continue their activities without significant interruptions, benefiting from the swift and efficient help provided by LunarCapital’s knowledgeable support agents. Reliable customer support is essential when trading with any broker, and LunarCapital recognizes this importance by offering efficient and accessible service. Traders can reach LunarCapital’s support team 24/5 through multiple channels, including email, phone, and live chat. This ensures that help is always available, no matter the time or urgency of the inquiry.

We’ll explore what leverage is, how it works, and most importantly, develop smart strategies to leverage your forex trades like a pro. Recall that price movements are measured in pips and each pip move in a standard lot represents 10 units per trade. Take, for instance, Trader A in our earlier example is an aggressive trader. If the underlying currency in one of your trades moves against you, the leverage in the forex trade will magnify your losses. You must ensure a level of margin is available in your account for every trade you execute.

This is essentially free credit that can be used for trading purposes, and I was pleased on this occasion that there were no minimum trading requirements. Importantly, all deposits are fee-free, and e-wallets like Skrill and Neteller process within an hour, compared to 5-7 working days for wire transfers. I only really missed having PayPal available since this industry leader is one of the most widely used e-wallets and is accepted by rivals, including XTB and IG.

Customer Support

To my surprise everything was better than I expected, I didn’t have any problems with the registration process. If you have traded with LunarCapital we would really like to know about your experience – please submit your own review. Please note, some markets may only be available via CFDs or other derivatives. Similarly, the ‘Market Analysis’ section had a focus on just three currency pairs during testing which is not wide enough in my opinion. Withdrawals at LunarCapital are also disappointing, with all methods besides cards and wire transfers incurring a percentage withdrawal fee that can reach a hefty 3.4%, depending on the method. Wire transfers incur a $30-$45 flat fee (minimum limit of $500), many times more than the $5 withdrawal fee at eToro.

How are leverage and margin related?

For example, the EUR/USD spread can be as low as 0.3 pips on the VIP account, providing significant cost advantages for frequent traders. While spreads are slightly wider on Standard accounts, they remain highly competitive, making LunarCapital an appealing choice for traders of all levels. The broker’s objective is to offer attractive spreads across all account types, ensuring traders can benefit from cost-effective trading regardless of their account tier. LunarCapital provides access to the widely acclaimed MetaTrader platforms, including MetaTrader 4 (MT4) and MetaTrader 5 (MT5), offering a flexible and comprehensive trading experience.

Leverage and Margin FAQ

On both platforms, placing a trade is a quick and straightforward affair that can be completed in a couple of clicks via the ‘Market Watch’ window or even more smoothly by turning on one-click trading. LunarCapital supports trading via the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, with MT5 added in 2025. Besides the very frustrating withdrawal charge, LunarCapital’s non-trading fees include a $5 inactivity fee charged after 120 days of dormancy. I really like the ‘average spread tool’ available on the broker’s website which displays fees over recent trading sessions.

Cryptocurrencies

Some traders will recoil from using excessive leverage because their approach is driven by controlling risk whenever possible. In contrast, a swing trader will probably take on more risk because their overall position size is greater; while the scalper’s risk per trade might be $50, the swing trader might risk $500. In this section, several questions on leverage and margin are to be addressed. Investing.co.uk has been helping British traders find the right broker for over 20 years. It accepts all trading styles and Expert Advisors on the MetaTrader 4 platform.

• While MetaTrader 4 handles all trade positions, the LunarCapital trader’s hub is where clients can access account information and settings, as well as manage the deposit and withdrawal of funds.
• These combine well with LunarCapital’s free forex VPS, hosted by BeeksFX, which is available to traders who deposit at least $2,500 and trade at least 30 lots per month.
• The platform is equipped with advanced analytical tools, including technical indicators and charting features, to help traders analyze market trends and make strategic trading decisions.
• Are there any specific benefits to leverage, and how does it make sense for forex traders?

Indices trading is another key offering at LunarCapital, allowing traders to gain exposure to the performance of entire stock markets through major global indices. LunarCapital provides access to a variety of indices, including well-known benchmarks such as the S&P 500, Dow Jones Industrial Average (DJIA), NASDAQ Composite, FTSE 100, DAX 30, and Nikkei 225. LunarCapital offers competitive spreads and leverage options on indices, facilitating both speculative trading and hedging strategies. The platform is equipped with advanced analytical tools, including technical indicators and charting features, to help traders analyze market trends and make strategic trading decisions. Whether you are bullish or bearish on broader market movements, LunarCapital’s indices trading platform provides the necessary tools and resources to execute your trading plans with confidence and precision.

This is low compared to many brokers, but it’s still a downside since rivals like Vantage charge nothing, making them a better fit for casual traders. LunarCapital has earned a good score for its fees due to the tight ECN spreads combined with no commissions, an unusual pricing model that places this brand among the cheapest forex brokers we have reviewed. The most frustrating absence is stocks, which are entirely missing, though traders can at least speculate on stock markets through index CFDs. LunarCapital runs bonus offers in certain jurisdictions, and when I opened an account with the global entity I was offered a 100% deposit bonus up to $2000. CySEC is a top-tier regulator that helps ensure LunarCapital follows strict business standards and implements safeguards like negative balance protection and segregated client funds. You can see the margin, free margin and margin level in the account terminal window.

Can I trade on my mobile device?

A widely accepted guideline suggests risking no more than 1-2% of your capital on any single trade. This prudent approach ensures that even if a trade turns sour, the potential loss remains manageable and won’t decimate your entire portfolio. Picture your trading capital as a precious resource that demands careful allocation. Instead of placing all your bets on a single trade, diversify your investments across various asset classes and trading strategies.

• For most brokers, the setting for margin, when set at default, will reflect 0.5%.
• If you have traded with LunarCapital we would really like to know about your experience – please submit your own review.
• So they can risk a relatively small deposit but buy a lot, which otherwise would not be affordable for them.
• This trading method can also exacerbate losses and involve additional risks.
• However, if the market went opposed to the trades favor, the loss would be $1000.
• LunarCapital supports trading via the MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms, with MT5 added in 2025.

In the following paragraphs, we will explore each of these tradable instruments in greater detail, highlighting the unique features and opportunities they present. Risky as it may be, there is some wisdom in using leverage and margin in your forex trading. These trading conditions, however, should only be used with extreme caution and with careful planning. The same huge gains that you are expecting with a highly leveraged trade could just as easily result in the same amount in losses for your trading account. With this in mind, you should carefully balance your expected profits with leverage and margin with the risks involved in every trade. The same trade can result in different losses or gains for two traders using a different leverage ratio.

What leverage should I use for Forex

While the broker does not run daily live streams, the platform does provide a dedicated research blog with news on upcoming economic events and https://lunarcapital.net/ price analyses of popular markets. Many brokers use special offers to entice new customers to sign up, such as a no deposit bonus. LunarCapital is no exception to this and offers new clients a 100% deposit match bonus of up to $2,000 on their first deposit following registration.

LunarCapital is regulated in Cyprus and the Comoros, and client funds are held in separate accounts. Open your account online and contact your account manager for more information. In our opinion, its Islamic account is one of the best on the market because you can keep your positions open for as long as you want without incurring additional costs. LunarCapital.com uses the MetaTrader 4 platform, made popular through its support of trading robots called ‘Expert Advisors’. LunarCapital supports all trading styles, including hedging, scalping, and arbitrage, and places no restrictions on your use of Expert Advisors.