What is Leverage and Margin? (MT5 Step-by-Step + Tiny Example) – Analytics & Forecasts – 14 August 2025

Abstract

Leverage helps you to management a big place with a small deposit. Margin is that deposit — the cash your dealer units apart to maintain your commerce open. In MT5, figuring out your leverage and margin helps you handle threat and keep away from margin calls.

Key Takeaways

Greater leverage = greater trades, but in addition greater threat.

Margin is the cash locked by your dealer once you open a commerce.

In case your losses get too massive, a margin name can shut your trades.

MT5 exhibits your margin and free margin reside within the Terminal window.

A – The Concept in Easy Phrases

Leverage is sort of a mortgage out of your dealer that allows you to commerce greater than you may have. When you have $100 and leverage 1:100, you’ll be able to management $10,000 available in the market. Margin is the a part of your cash that’s locked as a assure for that commerce. The remainder of your stability known as free margin — cash you’ll be able to nonetheless use for brand new trades or to soak up losses. An excessive amount of leverage can wipe out your account rapidly if the market strikes in opposition to you.

B – MT5 Steps to Verify Leverage and Margin

Open MT5 and log in to your account.

Go to the Terminal window (Ctrl+T).

Click on the Commerce tab.

Search for:

Stability (whole funds)

Fairness (Stability ± open commerce earnings/losses)

Margin (cash locked for open trades)

Free Margin (Fairness – Margin)

Margin Degree (% = Fairness ÷ Margin × 100)

Your account leverage is about by your dealer — you’ll be able to examine it in your account particulars.

C – Fast Instance with Numbers You could have:

Required Margin = 100,000 ÷ 100 = 1,000 EUR (~$1,000 USD)

Right here, your total stability is used as margin — no free margin left for extra trades.

D – Widespread Errors & Fixes

Utilizing an excessive amount of leverage → Use smaller lot sizes to cut back threat.

Not checking free margin → At all times preserve some free margin to deal with losses.

Complicated margin with charges → Margin shouldn’t be a value; it’s a locked deposit.

Ignoring margin stage % → If it drops too low, you threat a margin name.

Buying and selling a number of pairs with out monitoring margin → Can rapidly over-leverage you.

E – If You Use My Instruments (Optionally available)

A few of my MT5 indicators show margin stage, free margin, and threat per commerce immediately in your chart.

Mini-Glossary

Leverage: A ratio exhibiting how a lot bigger your trades are in comparison with your capital.

Margin: Cash put aside by your dealer once you open a commerce.

Free Margin: Fairness minus margin — cash nonetheless obtainable for buying and selling.

Margin Degree: Fairness ÷ Margin × 100.

Fairness: Your stability plus or minus open commerce outcomes.

Stability: Complete cash in your account (no open trades).

Margin Name: Dealer motion when your margin stage is simply too low.

Guidelines

Know your account leverage.

Verify margin earlier than opening trades.

Maintain free margin obtainable.

Watch margin stage % to keep away from margin calls.

Use smaller positions if threat feels too excessive.

Comply with the trades & updates on MQL5 → https://www.mql5.com/en/channels/issam_kassas