The two concepts that decide how big you can trade — and how fast you can lose.
The 30-Second Version
- Leverage lets you control a larger position with a smaller deposit.
- Margin is the deposit your account sets aside to keep that position open.
- Higher leverage = lower margin needed = bigger profits and bigger losses.
Leverage Explained
Leverage is shown as a ratio. 1:100 means every $1 in your account can control $100 in market value.
Example — EUR/USD at 1:100
- 1 standard lot of EUR/USD = €100,000 notional value.
- At 1:100, you only need 1% of that as margin → about $1,000.
- A 1% move in your favour doubles your $1,000.
- A 1% move against you wipes it out.
Margin Explained
Margin is the amount your account "locks" to support an open position. Two things to track:
| Term | What it means |
| Used margin | Amount currently locked by your open positions |
| Free margin | Equity minus used margin — what's available for new trades or losses |
| Margin level | Equity ÷ Used margin × 100, shown as % |
Tip: Free margin — not total balance — is what really limits how much more you can trade.
Leverage Available on Rise
The maximum leverage on your account is set when the account is opened. From there, you can opt into Dynamic Leverage, which automatically steps the ratio up or down based on the size of your open positions.
A short overview:
| Instrument group | Top tier (small size) | Lower tiers (large size) |
| FX Majors / Minors | up to 1:5000 | down to 1:50 |
| Gold Spot | up to 1:5000 | down to 1:20 |
| Spot Indices (DJ30, S&P500, etc.) | up to 1:2000 | down to 1:20 |
| Cryptocurrencies (BTC/ETH) | up to 1:200 | down to 1:2 |
| Stocks | up to 1:50 | down to 1:2 |
See the full Dynamic Leverage article for every instrument category and tier.
Why Higher Leverage Isn't Always Better
Leverage doesn't change how much you can win or lose in dollars — that's set by the position size. What it changes is how little margin you need to open a given size.
The risk: lower margin requirement makes it tempting to open positions that are far larger than the account can absorb. A single bad move can wipe out the account.
Important: Leverage is a double-edged sword. Always size positions based on the loss you can accept, not the leverage available.
Margin Call and Stop-Out
If your trades move against you, used margin stays the same but equity falls, dragging the Margin Level down. When it crosses Rise's thresholds:
- Margin Call — warning. Add funds or close some positions.
- Stop-Out — Rise begins closing your positions automatically to protect the account.
See Why was my trade closed automatically for the full mechanics.
A Worked Example
You deposit $1,000. Your account is set at 1:500.
You open 1 lot of EUR/USD (notional €100,000 ≈ $108,000).
- Margin required: notional ÷ 500 ≈ $216.
- Free margin: $1,000 − $216 ≈ $784.
If EUR/USD moves 20 pips against you (1 pip ≈ $10 on a standard lot):
- Floating loss: $200.
- Equity drops from $1,000 to $800. Free margin drops to ~$584.
If the same trade moved 78 pips against you, equity would drop to ~$220 — barely above the used margin. At that point you'd be near or at stop-out.