Maximize your trading potential with flexible leverage up to 1:500. Understand our tiered margin requirements and learn how to calculate margin for every instrument class.
Leverage allows you to control a larger position in the market with a smaller amount of capital. At N1CM, we offer flexible leverage up to 1:500, meaning you can open a position worth $500,000 with just $1,000 of margin. While leverage amplifies potential profits, it equally amplifies potential losses, so it is essential to use it responsibly alongside proper risk management.
Margin is the amount of capital required to open and maintain a leveraged position. It acts as a good-faith deposit, not a fee. Your margin requirement depends on the instrument traded, your account equity, and the leverage tier applicable to your position size.
N1CM uses a dynamic (tiered) leverage model. This means that as your total exposure in a particular instrument increases, the maximum leverage available decreases. This approach protects both you and us from excessive risk on large positions while still offering competitive leverage for standard-sized trades.
Leverage for forex pairs is applied per instrument based on cumulative open volume. The following tiers apply to major currency pairs (EUR/USD, GBP/USD, USD/JPY, USD/CHF, AUD/USD, NZD/USD, USD/CAD). Minor and exotic pairs may have lower maximum leverage.
| Tier | Position Size (Lots) | Max Leverage | Margin Requirement |
|---|---|---|---|
| Tier 1 | 0 - 20 | 1:500 | 0.20% |
| Tier 2 | 20 - 50 | 1:200 | 0.50% |
| Tier 3 | 50 - 100 | 1:100 | 1.00% |
| Tier 4 | 100 - 200 | 1:50 | 2.00% |
| Tier 5 | 200+ | 1:25 | 4.00% |
Different instrument categories carry different levels of volatility and liquidity, which is reflected in the maximum leverage offered. The table below shows the maximum leverage available for the first tier (smallest position sizes) of each instrument class.
| Instrument Class | Max Leverage (Tier 1) | Margin Required (Tier 1) | Tier 1 Lot Limit |
|---|---|---|---|
| Forex Majors | 1:500 | 0.20% | 0 - 20 lots |
| Forex Minors | 1:200 | 0.50% | 0 - 15 lots |
| Forex Exotics | 1:100 | 1.00% | 0 - 10 lots |
| Gold (XAU/USD) | 1:200 | 0.50% | 0 - 10 lots |
| Silver (XAG/USD) | 1:100 | 1.00% | 0 - 10 lots |
| Platinum (XPT/USD) | 1:50 | 2.00% | 0 - 5 lots |
| Crude Oil (WTI/Brent) | 1:100 | 1.00% | 0 - 20 lots |
| Natural Gas | 1:50 | 2.00% | 0 - 10 lots |
| Major Indices | 1:200 | 0.50% | 0 - 50 lots |
| Minor Indices | 1:100 | 1.00% | 0 - 30 lots |
| Share CFDs | 1:20 | 5.00% | All sizes |
| Cryptocurrencies | 1:10 | 10.00% | 0 - 5 lots |
Below are practical examples showing how margin is calculated for different instruments and position sizes. Understanding these calculations helps you plan your trades and manage risk effectively.
Trade: Buy 5 lots of EUR/USD at 1.0850
Notional Value: 5 lots x 100,000 units x 1.0850 = $542,500
Leverage Tier: Tier 1 (0-20 lots) = 1:500
Margin Required: $542,500 / 500 = $1,085.00
Trade: Buy 30 lots of EUR/USD at 1.0850
Notional Value: 30 lots x 100,000 units x 1.0850 = $3,255,000
Total Margin Required: $4,340.00 + $5,425.00 = $9,765.00
Trade: Buy 2 lots of XAU/USD at $2,050.00
Notional Value: 2 lots x 100 oz x $2,050.00 = $410,000
Leverage Tier: Tier 1 (0-10 lots) = 1:200
Margin Required: $410,000 / 200 = $2,050.00
Trade: Buy 10 lots of US500 at 5,200
Notional Value: 10 lots x $10 per point x 5,200 = $520,000
Leverage Tier: Tier 1 (0-50 lots) = 1:200
Margin Required: $520,000 / 200 = $2,600.00
Trade: Buy 1 lot of BTC/USD at $65,000
Notional Value: 1 lot x 1 BTC x $65,000 = $65,000
Leverage Tier: Tier 1 (0-5 lots) = 1:10
Margin Required: $65,000 / 10 = $6,500.00
To protect your account from negative balance, N1CM enforces margin call and stop-out levels. These automated safeguards help limit your losses when market conditions move against your positions.
| Event | Standard Account | ECN Account | Raw Spread Account |
|---|---|---|---|
| Margin Call Level | 80% | 80% | 70% |
| Stop-Out Level | 50% | 50% | 30% |
| Negative Balance Protection | Yes | Yes | Yes |
