At FXON, the same rules regarding leverage are applied to all accounts. You can trade up to 1000 times your account size. Leverage will not be reduced before major events, so you can trade with the same leverage at any time. We also do not lower leverage levels for individual traders.

FXON uses a zero cut system, which resets your negative account balance when you incur a loss exceeding your account balance. This means your losses will be limited to the size of your account.

FXON adopts flexible leverage for specific groups of stock brands. By adopting flexible leverage, we enhance the capital efficiency for customers starting with small amounts while protecting traders' funds from excessive risk.

Major and minor currency pairs, as well as precious metal CFDs, are subject to flexible leverage, which varies incrementally from a maximum of 50x to a maximum of 1,000x depending on the account balance (equity).

Fixed leverage for CFDs

A fixed leverage will be applied for CFD instruments, excluding precious metals. Energy, stock indices, stocks, and cryptocurrency CFDs are traded at a fixed leverage of either 50x or 10x, regardless of equity or account settings.

At FXON, our goal is to provide a fair trading environment for all of our customers. As a general rule of thumb, we will not limit leverage for certain users or before or after major events.

By using leverage, you can trade at a much bigger scale by using your margin as collateral. Margin refers to the sum of money required in your account to trade at a certain leverage level.

By using a high leverage, you can increase your capital efficiency and enter bigger positions using your account balance as collateral.

For instance, if you have $100 in your account and use a 1000x leverage, you can trade up to $100,000. Maximize your trading experience with FXON.

To calculate the required amount of margin, you need 3 variables, “Current price”, “Volume”, and “Leverage ratio”. Use the formula below to calculate the required margin.

For instance, if you’re using a 1000x leverage and wish to trade 1 lot (100,000) when USD/JPY is 150, you can calculate the required amount as shown below.

When placing hedged orders on the same currency pairs (or those with a high correlation) using the same account , the required margin will be offset to zero through an offset method at FXON.

You can maximize your capital efficiency by using a high leverage. However, this means your risk increases easily as well. Taking measures to manage your risk is essential.

Increasing leverage enhances the potential for higher profits, but it also magnifies the risk of losses. For instance, if trading with a balance of 30,000 yen and required margin of 15,000 yen when the exchange rate is 1 dollar = 150 yen, leverage affects the profit and loss as follows.

Increasing leverage significantly impacts the profit or loss per 1 pip movement.

We offer an environment where even small funds can engage in large trades with leverage of up to 1,000 times. However, it's advisable for beginners to start with low leverage until they become familiar with trading.

Especially for beginners, we recommend starting with small trading lots until they have gained sufficient knowledge and experience.

One of the risks of trading with leverage is the higher probability of hitting a stop-loss. Trading with high leverage can cause substantial fluctuations in margin, potentially triggering a stop-loss due to temporary price movements.

FXON implements margin calls and stop-loss triggers based on the maintenance margin ratio to mitigate the amplification of traders' losses. The conditions triggering margin calls and stop-loss are as follows:

Margin call is a mechanism that notifies when funds are at a dangerous level before triggering stop-loss. If the maintenance margin ratio falls below the margin call and stop-loss is triggered, all positions are forcibly liquidated.

At FXON, we operate a zero-cut system where, in the rare event that a client's account balance goes negative, no additional margin is required. This system is designed to ensure a secure trading environment for our clients.