What is Deriv?

Deriv allows its users to easily fund their account using different deposit methods including cryptocurrency wallets and bank cards to further trade crypto, binary options, Forex, commodities, synthetic indices, stocks, and stock indices using their official website or downloading a mobile App.

What is leverage?

Leverage in CFD trading refers to using borrowed funds to increase your trading position.

Taking advantage of leverage helps to improve your strategies and maximize your potential profits. Leverage is a legit way to open larger positions for a fraction of the trade’s value and helps you to take advantage of the smallest price movements to earn more and to maximize your market exposure for a really small account.

Unlimited leverage on Deriv

If you are looking for unlimited leverage you should know that the higher the leverage, the less money you need to open a position but also the easier it is to lose all your capital. With unlimited leverage even a very slight price movement would close your deal by stop loss in just a moment. This is why brokers establish limits on the available leverage.

Leverage Limitation on Deriv accounts

Deriv offers to its users a limited leverage for the reason of safety. Trading at Deriv gives you access to flexible leverage up to 1:1000. This allows users to take larger positions but doesn’t involve too much risk for their trading capital.

Dynamic Margin Requirements on Deriv

Dynamic margin is a method of calculating margin requirement rates for open positions based on the size of the exposure, and whether any of the position is hedged or not.

Fixed Margin Requirements on Deriv

Fixed margin means that there is a fixed amount of margin that is required to open a position. Fixed margin protects your capital from margin amounts’ changes as market rates fluctuate.

How to Calculate Margin on Deriv platform

Deriv offers a special tool called margin calculator that calculates the margin required for a contract on Deriv Metatrader 5 based on the formula:

Margin = (volume × contract size × asset price) ÷ leverage

This gives you the margin requirement in the quote currency for forex pairs, or in the denomination of the underlying asset for other instruments.

Margin requirements depending on leverage

The equivalent leverage ratio as a result of the margin requirement. The lower the margin requirement, the greater amount of leverage can be used on each trade. However, a broker may require higher margin requirements, depending on the particular currency being traded.


How leverage affects your trading?

It gives you the flexibility to take significant positions without tying up excessive amounts of capital, and magnifies the size of any profits you might make.

How to change leverage on Deriv?

You can't change the leverage. There's a fixed default amount for each asset. The leverage applied to your account can be found on your Deriv MT5 dashboard.

Which is Deriv maximum leverage?

Deriv offers flexible leverage up to 1:1000.

If you’re a beginner, a smart way to work your way around it is by trading first on a demo-account and then starting small no matter how tempting the leverage ratio is. It's never a good idea to head straight for large amounts, as doing so may completely impact your trades.