7 minute read
How to Change Leverage on OANDA
Leverage is one of the most powerful tools in the arsenal of a trader. When used correctly, it can amplify gains and unlock flexibility. But when misused, it can devastate even the most promising portfolio. If you’re trading with OANDA, one of the most respected names in the online brokerage world, knowing how to change your leverage is not just a technical skill — it’s part of mastering your risk profile.
In this complete guide, we’ll break down everything you need to know about changing leverage on OANDA, from platform-specific procedures to real-world leverage strategy, risk control, and smart leverage management.
No fluff. Just clear, tactical knowledge.
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📚 Understanding Leverage on OANDA
Leverage on OANDA refers to the multiplier effect you apply to your available capital. With leverage, you can open larger positions than your account balance would otherwise allow.
👉 For example:
With 50:1 leverage, you can control a $50,000 trade with just $1,000.
With 20:1 leverage, the same $1,000 allows you to trade $20,000 worth of assets.
However, leverage is a double-edged sword — it magnifies both profits and losses. That’s why regulatory bodies like the CFTC, FCA, and ASIC impose strict limits on how much leverage brokers like OANDA can offer.
The exact leverage available to you depends on:
Your account region (U.S., EU, Asia, etc.)
Your regulatory body
The instrument category (forex, commodities, indices, crypto)
Your account type (standard, corporate, or pro-level in some regions)
🌎 Regional Leverage Regulations with OANDA
Before you attempt to change leverage, you must first understand what’s allowed in your jurisdiction.
📌 United States (CFTC/NFA)
Forex majors: Max leverage = 50:1
Forex minors/exotics: Max leverage = 20:1
Commodities: Variable and often lower
Leverage is fixed and non-adjustable due to U.S. regulations.
📌 Europe (ESMA)
Forex majors: Max leverage = 30:1
Indices: 20:1
Cryptos: 2:1
Cannot change leverage unless you qualify as a Professional Client
📌 Australia & Rest of World (ASIC, IIROC, etc.)
Forex: up to 500:1 (if eligible and approved)
OANDA may allow adjustable leverage within your account settings depending on your region.
🔧 How to Change Leverage on OANDA: Step-by-Step
Let’s dive into how you actually change leverage on OANDA — assuming you're trading in a region where leverage is adjustable (such as Singapore, Japan, or certain offshore entities).
✅ Step 1: Log In to OANDA Account
Head to the OANDA client portal (web or mobile). Use your registered credentials to log in.
You’ll land on your account dashboard, which shows:
Account balance
Account ID
Platform access (MT4, OANDA Web, Mobile)
✅ Step 2: Choose the Right Trading Account
OANDA may allow multiple sub-accounts under your profile. Choose the trading account you wish to adjust the leverage for.
Make sure:
You have no open trades if leverage changes require account migration.
You are verified and approved by OANDA to make such changes.
✅ Step 3: Access Leverage Settings
Depending on your jurisdiction and platform, go to:
"Account Settings" or
"Manage Account"
Then choose "Leverage" or “Risk Settings”
Some users may have to contact support or request leverage changes via a form. In some regions, this cannot be done manually and needs to be approved case by case.
✅ Step 4: Select Leverage Ratio
You’ll see a drop-down menu or set of leverage tiers:
20:1
50:1
100:1
200:1
500:1 (where permitted)
Select the leverage that matches your risk appetite and strategy. Submit the changes.
✅ Step 5: Confirm Changes
Some changes take effect immediately, others require manual confirmation by OANDA. Always double-check your margin requirements and available balance afterward.
⚠️ Warning: If you have open positions, leverage changes may affect:
Your margin level
Your ability to maintain those positions
Stop-out risks
🧠 Strategic Leverage Use: When & Why to Adjust
Leverage isn’t just a tool — it’s a risk philosophy. Smart traders adjust leverage based on market conditions, personal capital, and position type.
Here’s how professionals use leverage:
📉 Scalping or Day Trading
High leverage (100:1 – 500:1)
Smaller stop losses
Tight execution timing
Requires discipline and fast reflexes
📈 Swing or Position Trading
Moderate leverage (20:1 – 50:1)
Larger stop losses
Long-term plays
Focuses on trend continuation
💰 Hedging or Portfolio Protection
Low leverage (10:1 – 20:1)
Capital preservation
Defensive mindset
Adjusting leverage isn’t about gambling bigger — it’s about matching risk with method.
📊 What Happens When You Change Leverage?
Here are the consequences — both technical and strategic — of changing leverage on your OANDA account:
✅ Margin Requirements Shift
Lowering leverage increases your required margin per trade. You’ll need more money to open the same lot size.
✅ Trade Size Flexibility Changes
With higher leverage, you can open larger positions but also expose yourself to larger potential drawdowns.
✅ Potential Forced Closure
If you reduce leverage while positions are open, and your new margin requirements exceed your current balance, trades could be force-closed.
✅ Equity vs. Risk Ratio Adjustments
Changing leverage affects your equity-to-risk ratio, which should always stay balanced based on your position sizing rules.
🛡️ Risk Management With Leverage
No matter what leverage you choose, protecting your capital is non-negotiable. Use these techniques in tandem with leverage adjustments:
🔒 Always Use Stop-Loss Orders
Every position should have a defined stop-loss to cap downside risk. Don’t guess. Plan.
📏 Set Daily Loss Limits
Using leverage without emotional discipline leads to revenge trading. Set absolute daily or weekly loss caps.
🧮 Calculate Margin Before Entering Trades
Know how much margin your trade will consume before clicking buy or sell.
📘 Stick to 1–2% Risk Per Trade Rule
Even with 500:1 leverage, only risk a small portion of your capital per trade.
⚠️ When You Should Not Increase Leverage
Traders often make the mistake of increasing leverage after a losing streak. This is dangerous and irrational. Here's when not to adjust leverage upward:
🚫 After large losses — your psychology is compromised🚫 When trading emotional setups🚫 When you're unsure of the market direction🚫 When overtrading🚫 When testing a new strategy with real funds
Instead, increase leverage gradually after you’ve proven your method over dozens of trades under various market conditions.
💡 Real Example: Leverage Mismanagement vs. Smart Use
Let’s look at two hypothetical traders on OANDA:
❌ Trader A: Misuse
Account: $1,000
Leverage: 500:1
Opens 2.00 lot size
No stop-loss
Single bad trade wipes out 80% of equity
✅ Trader B: Smart Use
Account: $1,000
Leverage: 100:1
Opens 0.10 lot per trade
Uses 20-pip stop-loss
Risk per trade = 2%
Account remains safe even after 5 losses in a row
Leverage is not the enemy — misuse of it is.
Read more:
🧩 Final Thoughts: Leverage Is a Strategic Weapon
OANDA offers leverage as a tool for empowerment — not for recklessness. Changing your leverage should not be an impulsive act. It should be a calculated decision made based on:
Your capital size
Your risk tolerance
Your strategy timeframe
Your psychological readiness
🔥 Traders who master leverage control consistently outperform those who gamble with high exposure.
The real edge isn’t in getting more leverage. It’s in using just enough to multiply returns without multiplying stress.
—
Control leverage. Control your destiny. 🧠⚖️
If you’re serious about becoming a better trader on OANDA, understanding leverage is your gateway. Change it wisely. Trade it masterfully.
📈 Because in the end, success isn’t about how much you can gain — it’s about how much you can afford to lose and still come back stronger.
