Free tool
Leverage calculator
The leverage you are actually using, which is often very different from the leverage your broker offers.
Max position uses your whole balance as margin. Opening it would leave no room for any loss.
Conversions use reference rates from 16 October 2026. Your broker’s live prices will differ slightly.
Offered leverage versus used leverage
A broker offering 1:500 does not make a trade riskier by itself. What matters is the size of the position compared with your account. Two traders with the same 0.10-lot trade carry the same risk per pip at 1:30 or 1:500. The higher-leverage account simply locks up less margin. The danger is that high leverage allows positions far too big for the account. See leverage and margin explained and the margin calculator.
Keep leverage in check
Size each trade from its stop with the lot size calculator. If your effective leverage across all open trades climbs above 1:10 to 1:20, a normal day's move can do serious damage.
FAQ
How do you calculate effective leverage?
Effective leverage = total position value ÷ account balance. A 1-lot EUR/USD position worth about $108,500 on a $10,000 account is roughly 1:10.85, whatever leverage your broker offers.
What is the difference between broker leverage and effective leverage?
Broker leverage (for example 1:500) is a ceiling. It sets the margin needed and the biggest position you could open. Effective leverage is what you are really using, and it is what decides how hard a price move hits your account.
What leverage is safe in forex?
There is no single safe number, but many experienced traders keep effective leverage below about 1:10 across all open trades. Sizing every trade from its stop loss and a fixed risk percentage keeps it in check automatically.
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