Leverage Safety Checker
Leverage multiplies profit and loss with identical enthusiasm. This tool shows what your leverage actually means in notional exposure, margin, and distance to liquidation — before the broker's call. Part of Guideline 8.
Your Position
Verdict
What the Numbers Mean
| Term | Meaning |
|---|---|
| Notional value | Total position value = lots x contract size. $10,000 of equity at 1.00 lot EURUSD = $100,000 notional = 10x exposure. |
| Margin required | Notional / leverage. This is the money locked by the broker — the rest of your balance is "free margin". |
| Margin % of account | Margin / equity. Above 50% you are one bad candle from a margin call at typical broker settings. |
| 1% move cost | Notional x 1%. At 100:1, a 1% move against you equals 100% of the margin you put up. |
| Distance to liquidation | Free margin / notional = the price move (in %) that wipes the account at that size. This is the honest "safety distance". |
Regulatory caps for reference (Guideline 8): ESMA retail = 30:1 majors / 20:1 gold; US retail = 50:1; many offshore brokers offer 500-1000:1. The guideline, not the regulation: keep notional exposure under 10-20x equity and margin under 30%.
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