How is the leverage ratio determined in CFD trading?
Leverage in PU Prime comes in two primary forms: account leverage and fixed leverage.
Account leverage: The ratio you have selected with your trading account, by default set at 1:500.
Fixed leverage: Refers specifically to the leverage for each product and does not follow the account leverage. This can be found in the "Margin Percentage" under each product's "Specification".
The leverage ratio calculation depends on the leverage type shown in "Margin Calculation Mode", which can be found in the product "Specification". The calculation formula for each margin calculation mode is shown below.
Forex: Contract size * Lot * Margin Percentage / (Account Leverage)
CFD-Leverage: Contract size * Lot * Open Price * Margin Percentage / (Account Leverage)
CFD: Contract size * Open Price * Lot * Margin Percentage
CFD (If there is a column of "Margin Initial"): Margin initial * Lots * Margin Percentage
*Note: The calculation result will be in the margin currency. If this is different from your account currency, the system will automatically convert it to your account currency.
