The Complete Guide to IC Markets Leverage

Opening — Who this article is for and what it solves

You use or plan to use IC Markets. You want clarity on leverage, margin, and position sizing. You trade retail or professional. You need rules that let you trade safely and efficiently. This guide solves that. It explains leverage as ratios from 1:1 to 1:500. It shows margin math as percentages. It gives exact steps to change leverage in the client portal. It includes concrete examples with numbers for margin, position size, pip value, and risk. It highlights regulatory caps, common fees, and traps to avoid. Read this if you hold $1,000, $10,000, $50,000, or more. Expect explicit steps, at least 20 numeric examples, and a simple decision flow to choose leverage for your strategy.

Quick Answer / TL;DR — Key takeaways and quick-start steps

• Want maximum exposure → use higher leverage up to 1:500 on supported accounts; margin at 1:500 equals 0.2% per position.
• Want lower risk → pick 1:10 or 1:20; at 1:10 margin is 10%, at 1:20 margin is 5%.
• Changing leverage → log into the IC Markets client portal and select ratios such as 1:1, 1:10, 1:30, 1:100, 1:200, 1:500 as available.
• Risk-control rule → risk no more than 1–2% of equity per trade. Never use full available margin to avoid a fast liquidation.

Leverage Basics — Ratios from 1:1 to 1:500

Define leverage and margin in one line. Leverage is a ratio that multiplies buying power. Margin is the cash portion you must post (a percentage).

• 1:1 means 100% margin. You need $1,000 margin to control $1,000 notional.
• 1:10 means 10% margin. You need $1,000 margin to control $10,000 notional.
• 1:100 means 1% margin. You need $1,000 margin to control $100,000 notional.
• 1:500 means 0.2% margin. You need $200 margin to control $100,000 notional.

Give clear math examples in short steps.

• Example A: You have $1,000 equity and choose 1:100. You can open $100,000 notional. Margin required equals $1,000.
• Example B: You have $1,000 equity and choose 1:500. You can open $500,000 notional. Margin required equals $200.
• Example C: With $10,000 equity at 1:50, you can open $500,000 notional. Margin required equals $10,000 ÷ 50 = $200.

Show buying power formula. Buying power equals equity × leverage. Margin percent equals 1 ÷ leverage × 100.

• 1:50 → margin 2% (1 ÷ 50 = 0.02 → 2%).
• 1:200 → margin 0.5% (1 ÷ 200 = 0.005 → 0.5%).
• 1:30 → margin 3.33% (1 ÷ 30 ≈ 0.0333 → 3.33%).

List common leverage steps and margins.

• 1:1 — margin 100%.
• 1:10 — margin 10%.
• 1:30 — margin 3.33%.
• 1:100 — margin 1%.
• 1:200 — margin 0.5%.
• 1:500 — margin 0.2%.

Emphasize amplification in short, concrete terms.

• A 1% adverse move on a 1:500 position equals a 500% return on margin used.
• A 2% adverse move on a 1:100 position equals a 200% return on margin used.

Watch out for: Higher leverage amplifies both gains and losses. Check required margin before opening any trade.

IC Markets Account Types and Leverage Caps — Retail vs Professional, 2:1 to 1:500

List account names and regulation impact. IC Markets commonly offers Standard and Raw Spread accounts. Leverage availability depends on legal entity and your country of residence.

Explain typical regulatory caps with clear numbers.

• Retail clients under certain regulators may be capped at 1:30 on major forex pairs (30:1).
• Professional clients who meet 2 of 3 tests can access up to 1:500 (500:1).
• Example instrument caps (illustrative): forex majors up to 1:500 for eligible accounts or 1:30 for regulated retail accounts; indices up to 1:200; commodities up to 1:20; single-stock CFDs up to 1:5.

Detail professional client criteria in crisp steps.

• You must meet 2 of the 3 tests to qualify as professional.
• Test 1: Trade frequency of 10 or more transactions per quarter over the last 4 quarters.
• Test 2: Portfolio size greater than €500,000.
• Test 3: Relevant experience such as working in a financial role for at least 1 year or providing evidence of professional trading.

Give concrete numbers to show the difference.

• If retail cap is 1:30, margin for a $100,000 position equals $3,333.33.
• If professional cap is 1:500, margin for a $100,000 position equals $200.

State how entity and country matter.

• Check your account entity and residency. It determines maximum leverage.
• You may need to reclassify to professional to access higher limits. That requires documentation and meeting 2 tests.

Watch out for: Your available leverage can change if you move residence or change your account entity. Verify limits in the client portal before trading.

How to Change Leverage on IC Markets — Steps and timing (options include 1:1, 1:10, 1:100, 1:500)

Give step-by-step actions in commands.

• Log in to the IC Markets client portal.
• Select the trading account you want to modify.
• Click Change Leverage or the leverage dropdown.
• Choose a ratio from available options: examples include 1:1, 1:10, 1:30, 1:100, 1:200, 1:500.
• Confirm the change and accept any warnings.

Explain timing and immediate effects.

• Most changes apply immediately or within a few minutes.
• If you have open positions, the portal may block reducing leverage until you close positions.
• Increasing leverage usually reduces required margin instantly. Decreasing leverage can increase required margin instantly.

Provide concrete margin-before-and-after numbers.

• Example 1: You hold a $50,000 notional position at 1:100. Required margin equals $500 (1%).
• Example 2: Switch that same position to 1:500. Required margin becomes $100 (0.2%). You free $400.
• Example 3: Reverse change from 1:500 to 1:100 for a $50,000 position. Required margin jumps from $100 to $500. If your free margin is less than $400, you risk a margin call.

Give checklist before changing leverage.

• Check open positions and current free margin in dollars.
• Calculate new margin requirement using 1 ÷ new leverage × notional.
• Confirm regulatory or entity restrictions that may block the desired ratio.
• If free margin is tight, do not lower leverage until you close positions.

Explain practical timing constraints.

• Some changes reflect across the platform within 60 seconds.
• Customer support can intervene if a change fails.
• You may need to close positions to complete a leverage reduction.

Watch out for: Do not decrease leverage when free margin is low. That action can trigger immediate margin calls and forced closures.

Leverage Impact on Risk and Position Size — Examples with $1,000 and $50,000 accounts (include 2 concrete numbers)

Open with short, practical statements.

• You control position size with equity and leverage.
• You control risk with stop-loss placement and position sizing.

Provide two concrete account examples with numbers.

• Example A ($1,000 equity): At 1:100 you can theoretically control $100,000 notional. If you used full margin, you could open 1 standard lot on EUR/USD. One standard lot is 100,000 units. Typical pip value on EUR/USD for 1 standard lot equals about $10 per pip.
• Example B ($50,000 equity): At 1:50 you can open $2,500,000 notional. At 1:10 you can open $500,000 notional.

Show stop-loss and percent-risk math with numbers.

• Risk rule: Risk 1% of equity per trade.
• If equity equals $10,000, 1% risk equals $100.
• With a 50-pip stop and EUR/USD pip ≈ $10 per pip for 1 lot, risking $100 means position size equals 0.2 lots (50 pips × $10 × 0.2 = $100).
• With a $1,000 account and 100-pip stop, risking 2% equals $20. At $10 per pip per lot, position size equals 0.02 lots.

Explain margin call and stop-out with numeric example.

• Used margin example: You open positions requiring $2,000 margin. Your account equity equals $2,500. Free margin equals $500.
• A 20% adverse swing on notional could reduce equity by $500 to $2,000, leaving free margin zero.
• If broker stop-out triggers at equity 50% of used margin, show numbers: used margin $2,000 → stop-out at $1,000 equity. A 60% adverse move would reach that outcome.

List practical risk-control steps.

• Calculate pip value and lot size before entering.
• Limit risk per trade to 1%–2% of equity.
• Keep at least 20%–50% of capital unused as buffer.
• Use smaller leverage if you use wider stops.

Watch out for: Leverage masks how quickly equity can erode. Avoid using full available margin and never treat maximum leverage as recommended leverage.

Fees, Costs, and Margin Requirements — Commissions, spreads, and financing (examples: $3.50, 0.0–1.0 pips, 0.01% overnight)

Start by listing cost types that interact with leverage.

• Spread: the difference between bid and ask. Example range: 0.0–1.0 pips on majors for raw accounts.
• Commission: fixed per side or round-turn. Example $3.50 per side per standard lot (equals $7 round-turn).
• Overnight financing (swap): a financing fee charged per night. Example range: 0.01%–0.5% of notional per night depending on instrument.

Illustrate how costs scale with leverage using numbers.

• Example: $100,000 notional at 0.05% overnight costs $50 per night.
• Example: If you hold that position for 7 nights, overnight cost equals $350.
• Example: Spread of 0.5 pips on EUR/USD equals about $5 for 0.5 pips on 1 standard lot (0.5 × $10 = $5).
• Example: Commission $3.50 per side equals $7 total for 1 standard lot.

Give a sample trade cost breakdown.

• Open 1 standard lot EUR/USD with 1:100 leverage.
• Spread cost = $5 (0.5 pips × $10).
• Commission = $7.
• Overnight swap = $5 per night.
• Total first-day cost = $17 (spread + commission). Add $5 per night thereafter.

Explain effect of leverage on absolute costs.

• Leverage increases notional per dollar of margin.
• Overnight financing is charged on notional, not margin. For $100,000 notional, cost is based on $100,000, not $1,000 margin.
• Higher leverage makes overnight fees larger in absolute dollars.

List practical cost-control steps.

• Use low-leverage for multi-day holds to reduce financing burden.
• Choose sessions with low spreads for intraday trades.
• Account for commission per lot: $3.50 per side equals $7 round-turn.

Watch out for: Low spreads look attractive. But leverage multiplies notional. Fees on large notional can erode profits fast.

Edge Cases, Restrictions, and Special Instruments — Crypto, shares, and extreme volatility (examples: 1:2, 1:5, 1:200)

Open with concise statements and quick rules.

• Different instruments have different leverage caps.
• Crypto and single-stock CFDs typically have low leverage.
• Indices and FX can have higher limits.

Give instrument-specific examples with numbers.

• Crypto example: Typical leverage offered may be 1:2 or 1:5. Margin for 1:2 equals 50%. Margin for 1:5 equals 20%.
• Single-stock CFD example: Limit often 1:5 or 1:10. For 1:5 margin equals 20%; for 1:10 margin equals 10%.
• Indices example: Can reach 1:200 on eligible accounts. Margin for 1:200 equals 0.5%.

Explain volatility-driven margin increases with numeric scenarios.

• Broker may raise margin by 2x–5x during extreme events.
• Example: A 1% margin could be temporarily raised to 5% during a shock.
• Example: If margin rises from 1% to 5% on a $200,000 notional position, required margin jumps from $2,000 to $10,000.

Cover forced position reductions and hedging behavior.

• Some entities allow hedging; others net positions. Netting can reduce margin usage for offsetting positions.
• Example: If hedging is blocked, two opposing positions may require separate margin totaling 200% of a single position.
• Example: Broker may close positions when equity reaches 50% of used margin; that is a common stop-out level.

Practical steps for volatile instruments.

• Reduce leverage on crypto and single-stock CFDs.
• Use smaller position sizes: consider max 0.5%–1% of equity risk per trade on these instruments.
• Monitor news and switch off automated strategies during scheduled announcements.

Watch out for: During high volatility your effective leverage can drop because margin increases. That can force closures faster than you expect.

Comparison table — Instrument and Account Leverage Snapshot (intro + table + summary)

Quick glance at typical leverage availability and margin examples across common instruments and account contexts.

Summary: Use this table to compare risk per instrument. Convert leverage to margin percent using 1 ÷ leverage × 100. Check your account entity and platform for exact numbers.

Closing — Choose leverage based on capital, time horizon, and strategy

Decide using a simple flow. Answer three short questions.

• How large is your capital? Example choices: $1,000, $10,000, $50,000.
• What is your time horizon? Example: intraday (minutes to hours), swing (days to weeks), long-term (weeks to months).
• What is your stop-loss distance in pips or percent? Example: 20 pips, 50 pips, 200 pips.

Apply rules and numbers.

• If capital ≤ $1,000 and you scalp, consider 1:50 to 1:100. Keep risk ≤ 1% per trade.
• If capital ≥ $50,000 and you swing trade with 100-pip stops, consider 1:10 to 1:30.
• If you hold multi-day or multi-week positions, prefer 1:1 to 1:20 to control overnight financing costs.

Final checklist before you trade.

• Verify your account entity and maximum allowed leverage.
• Calculate margin required: use 1 ÷ leverage × notional.
• Set risk per trade at 1%–2% of equity.
• Confirm commission, spread, and overnight financing amounts.
• Avoid using full available margin. Keep at least 20%–50% of capital free.

Watch out for: Never confuse maximum available leverage with recommended leverage. Higher leverage increases risk and cost exposure. Test your approach on a demo account first.