Once you select the leverage when opening your account, it remains fixed and cannot be changed later. Leverage is a key factor in determining the margin required to maintain your open positions. Altering leverage after the account has been created could significantly impact your ongoing trades and risk management plan. Therefore, it’s essential to choose the appropriate leverage level carefully during the account setup process.
Understanding the role of leverage in trading is critical for effectively managing your positions. The leverage ratio directly affects the margin requirements for your trades, determining the amount of capital needed to control a given position. By selecting the right leverage at the outset, traders can ensure their risk tolerance aligns with their trading goals. While the inability to modify leverage after account creation might seem restrictive, it highlights the importance of making informed decisions when establishing your trading account.
Note: This information is provided by Be Prime Broker to help you make smarter and more strategic trading choices.