Pocket Option Leverage

Pocket Option provides traders with extensive leverage options through integration with MetaTrader 4 and 5 (MT4/MT5) platforms. This allows for the management of large positions with relatively small capital. However, it is important to remember that high leverage increases both potential profits and possible losses.
Pocket Option Leverage

Maximum Leverage by Asset Classes

Leverage may be automatically adjusted during periods of high volatility to reduce risks.

 Account Types and Leverage Availability

Pocket Option offers the following account types:
  • Demo Account: Allows practice with virtual funds and leverage up to 1:1000.
  • Real Account: Minimum deposit from $5. Access to leverage up to 1:1000 through MT4/MT5 platforms.
Important: Access to MT5 trading may require a certain account level, such as "Experienced," which typically involves a deposit starting from $1000.

How to Change Pocket Option Leverage Settings

To change leverage settings on Pocket Option:
  1. Log in to your Pocket Option account.
  2. Navigate to the MT4 or MT5 trading section.
  3. Open account settings and select the "Change Leverage" option.

Choose the desired leverage level (from 1:1 to 1:1000) and confirm the changes.
How to change leverage on Pocket Option
It is recommended to start with moderate leverage (such as 1:50 or 1:100) and gradually increase it as you gain more experience.

Risk Management When Trading with Pocket Option Leverage

1. Understand the Risks of Leverage
Leverage allows you to control larger positions with a smaller capital outlay.
For instance, a 1:100 leverage enables you to control $10,000 worth of assets with just $100.
While this can magnify profits, it equally increases potential losses.
A small adverse market movement can lead to significant losses or even a margin call.

2. Implement Strict Position Sizing
Determine the amount of capital to risk on each trade.
A common rule is to risk no more than 1–2% of your trading capital on a single trade.
This approach helps in preserving capital over the long term.

3. Use Stop-Loss Orders
Always set stop-loss orders to limit potential losses.
A stop-loss order automatically closes your position at a predetermined price level, preventing further losses if the market moves against you.

4. Monitor Margin Levels
Keep a close eye on your account's margin level.
If your equity falls below the required margin, you may receive a margin call, prompting you to deposit more funds or close positions.
Maintaining a healthy margin level helps prevent forced liquidations.

5. Start with Lower Leverage
If you're new to leveraged trading, consider starting with lower leverage ratios, such as 1:10 or 1:20.
This approach allows you to get accustomed to market movements and the impact of leverage on your trades.

Educate Yourself Continuously
Stay informed about market conditions, trading strategies, and risk management techniques.
Continuous learning helps you make informed decisions and adapt to changing market dynamics.

7. Utilize Pocket Option's Risk Management Tools
Pocket Option offers various tools to assist in risk management:
  • Demo Account: Practice trading strategies without risking real money.
  • Leverage Settings: Adjust leverage levels according to your risk tolerance
  • Stop-Loss and Take-Profit Orders: Automate trade exits to manage profits and losses.
  • Risk Calculator: Estimate potential losses and adjust position sizes accordingly.

8. Manage Emotional TradingEmotions like fear and greed can cloud judgment.
Stick to your trading plan and avoid impulsive decisions.
Implementing a disciplined approach helps in maintaining consistency and reducing emotional trading errors.

Conclusion

Leverage can be a powerful tool in trading, offering the potential for increased profits.
However, without proper risk management, it can lead to substantial losses.
By understanding the risks, implementing strict risk management strategies, and utilizing the tools provided by Pocket Option, you can navigate leveraged trading more safely and effectively.

FAQ

 What is the maximum leverage available on Pocket Option?

Pocket Option offers leverage up to 1:1000, depending on the asset class and account type.

Can I change my leverage setting after opening an account?

Yes, you can modify your leverage settings in your account settings under the MT4 or MT5 platform section.

Is it safe to use high leverage as a beginner?

High leverage increases risk. Beginners are advised to start with lower leverage, such as 1:10 or 1:20, until they gain more trading experience.

What happens if my margin level falls too low?

If your margin level drops below the required threshold, you may receive a margin call or have your positions automatically closed to cover potential losses.

How can I practice leverage trading without risking real money?

You can open a demo account on Pocket Option to practice trading strategies and experience leveraged trading without risking actual funds.