In this article, you will become familiar with the rules and conditions for using leverage (Leverage) on the Trendo broker platform.
Leverage allows traders to enter trading positions with capital larger than their actual account balance.
It is an essential tool to increase trading power, but incorrect use can also raise the risk of losses. Trendo protects users’ funds in sensitive market conditions by establishing clear rules regarding leverage.
For accounts with a balance below $50, the maximum leverage is set to 1:500.
Users can adjust their account leverage at any time within the allowed range by following these steps:
Log in to your Trendo trading account.
From the main menu, select the desired account.
Click on the pencil (edit) icon.
On the new page, choose and set the desired leverage from the available options.
To protect users’ funds during high market volatility caused by important economic news (highlighted in red on the Trendo Economic Calendar):
60 to 30 minutes before the news release:
Leverage for instruments related to that news is reduced to 1:500.
30 minutes before to 3 minutes after the news release:
Leverage for the same instruments is further reduced to 1:200.
To prevent potential losses from price gaps:
30 minutes before market close until 12 minutes after market opening, leverage for all trading instruments is reduced to 1:200.
This rule also applies during weekend trading holidays (Saturday and Sunday).
Opening hedge trades on Trendo requires available free margin.
Closing one side of hedge trades during periods of reduced leverage (such as before major news or market close) also requires available free margin according to the leverage rules.
Under normal conditions (outside the specified periods), closing hedge trades does not require free margin.
Trendo reserves the right to reduce account leverage when necessary, based on regulatory requirements or market conditions, to protect users’ capital.
During periods of extreme market volatility or regulatory decisions (international regulators), Trendo may temporarily or permanently reduce account leverage.
Awareness of Risk: High leverage can significantly amplify both profits and losses. Use it only if you fully understand the associated risks.
Demo Account Usage: Before using leverage on a real account, test your trading strategy in a demo account.
Check Insufficient Funds Error: If you encounter the error “Insufficient funds” when placing a new trade, first check your account leverage. Increase it if possible. If adjustment is unavailable, review leverage rules during news events or before market close. Also, verify your free margin for new trades.
Impact on Margin: Higher leverage means less margin is required to open trades, but it also increases risk.
Risk Management: Using high leverage without proper risk management can lead to significant losses. It is recommended to use tools such as Take Profit and Stop Loss.
If you require further guidance, please contact the Trendo support team.