Leverage, otherwise known as risk level, can be thought of as a temporary loan given to a trader.
It enables you, as the trader, to open a trade of a larger size with a smaller amount of invested capital. Leverage is presented in the form of a multiplier that shows how much more than the invested amount a position is worth.
Liquidity provider relationships, fostered by our strategic partners, allow us to offer our clients access to 1:5 leverage when trading non-deliverable OTC digital assets, either via our browser-based platform or through API connectivity. Leverage on our matching engine will be capped at 1:3 initially when trading using borrowed margin by way of our give-and-take lending platform.
Higher leverage will be made available to clients in the future with a proven track record of low-risk operations on a case-by-case basis. Via our partnerships, Coinmetro intends to offer FIX and API access to our exchange by way of a Prime of Prime model where FXPIG is the margin/credit provider. This will give individual and institutional traders access to exchange grade liquidity, spreads, and execution quality, paired with CFD-like available leverage.
Are Leverage and Margin the same?
Even though they are related. Leverage and margin are both different. Basically, you can use margin in order to create leverage.
Margin is debt or borrowed money used to invest in other financial instruments. A margin account enables you to receive money for an interest rate to purchase a basket of related goods with the purpose of receiving a higher percentage in return.
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