3 minute read
What is the standard account leverage for Pepperstone?
from Pepperstone Account
by Jone Eva
Leverage is a key feature in forex and CFD trading—it allows you to control a larger position with a smaller amount of capital. Pepperstone’s Standard Account offers flexible leverage settings to match your risk appetite and regulatory environment. In this in‑depth article, we’ll cover:
Leverage basics and why it matters
Exact leverage caps on the Standard Account by region and instrument
How to adjust your leverage in Pepperstone’s client area
Risks and best practices when using leverage
Example scenarios illustrating leverage impact
Open your Pepperstone Standard Account and set your leverage
1. Leverage Basics
Leverage is expressed as a ratio, such as 1:30 or 1:500. A leverage of 1:100 means that for every $1 of your own money, you can open a position worth $100 in the market. This magnifies both potential profits and potential losses:
Position Size = Margin × Leverage
Margin Required = Position Size ÷ Leverage
On the Standard Account, leverage affects only the margin you must set aside; your trading cost remains the spread—no commission.
2. Leverage Caps on the Standard Account
Pepperstone must comply with regional regulations. The Standard Account’s maximum leverage varies by asset class and where you reside:
A. UK & EU (FCA / ESMA rules)
Major Forex Pairs: up to 1:30
Minor Forex Pairs & Gold/Commodities: up to 1:20
Other Commodities & Indices: up to 1:10–1:20
Shares: up to 1:10
Cryptocurrencies: up to 1:2
B. Australia (ASIC), Dubai (DFSA), South Africa (FSCA), Kenya (CMA)
Major Forex Pairs: up to 1:500
Minor & Exotic Forex: up to 1:200
Commodities (Gold/Oil): up to 1:200–1:500
Indices: up to 1:200
Cryptocurrencies: up to 1:10–1:50
C. Other Regions
Clients in other jurisdictions typically fall under either ESMA‑style caps or ASIC‑style caps, depending on local regulation.
3. How to Adjust Your Leverage
Log in to your Pepperstone Personal Area.
Click on “Accounts” and select the Standard Account you wish to modify.
Hit “Change Leverage”.
Choose your desired ratio from the dropdown (e.g. 1:50, 1:100, up to your region’s maximum).
Confirm the change.
Your new leverage applies immediately to all new positions. Existing open trades remain on the leverage setting at the time of opening.
4. Risks and Best Practices
Leverage can amplify gains but also losses. To use it safely:
Never risk more than 1–2% of your account on a single trade.
Use stop‑loss orders on every position to cap potential losses.
Start with lower leverage (1:10–1:20) if you’re new, then scale up as you gain experience.
Monitor margin levels in real time to avoid margin calls.
Backtest strategies under different leverage scenarios in a demo account before going live.
5. Example Scenarios
Scenario A: Conservative Forex Trade
Account Equity: $1,000
Leverage: 1:20
Trade: 0.1 lot EUR/USD (notional $10,000)
Margin Required: $10,000 ÷ 20 = $500
Spread Cost: 1.0 pip × £1/pip = £1
Scenario B: High‑Leverage Scalping
Account Equity: $1,000
Leverage: 1:200
Trade: 0.1 lot GBP/USD (notional $10,000)
Margin Required: $10,000 ÷ 200 = $50
Spread Cost: 0.8 pip × £1/pip = £0.80
In Scenario B, you free up more margin for additional trades but face higher risk if the market moves against you.
Leverage is a powerful tool—use it wisely.
Open your Standard Account and customize your leverage today
