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A simple explanation of ThreeTrader's leverage: everything you need to know about limit rules, settings, and important points

Posted by: MoneyChat Editorial Department

ThreeTrader offers extremely high leverage, up to 1,000 times

While leverage allows for large trades with limited capital, failing to understand its mechanisms and limitations can lead to unexpected losses

This article provides a detailed overview of ThreeTrader's leverage, from the basics to leverage ratios for different account types and instruments, the conditions under which restrictions apply, and how to set and change them.

Contents

What is leverage in ThreeTrader? A simple explanation of the basic mechanism

Here, we will explain the basics of leverage in ThreeTrader

  1. Leverage is a mechanism that allows you to make large trades with a small amount of capital
  2. ThreeTrader offers leverage up to 1,000x
  3. The leverage ratio varies depending on the account type and the stock

Let's take a closer look at ThreeTrader's unique leverage specifications, starting with the fundamental leverage mechanism

Leverage is a mechanism that allows you to make large trades with a small amount of capital

Leverage is a system that allows you to trade with many times the amount of your initial deposit as collateral

For example, even with a margin of 10,000 yen, you can trade up to 1 million yen if you apply 100x leverage

While it allows for efficient use of funds, losses also increase at the same rate, so careful consideration is needed when using them

ThreeTrader allows you to utilize leverage across a wide range of instruments, including FX and CFDs, enabling you to trade like a pro even with a small amount of capital

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Even with small price fluctuations in the market, you can efficiently generate profits by utilizing leverage

However, losses can also escalate in the same way, so avoid making risky trades

ThreeTrader offers leverage up to 1,000x

ThreeTrader allows you to use leverage of up to 1,000 times for FX and CFD trading

This leverage ratio is among the highest for overseas forex brokers, making it easy to start serious trading even with a small amount of capital

For example, with a margin deposit of 10,000 yen, you can trade up to 10 million yen worth of assets

While high leverage can lead to significant profits, it also increases the risk of losses, making risk management extremely important

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margin100 times500 times1,000 times
10,000 yen1 million yen5 million yen10 million yen
50,000 yen5 million yen25 million yen50 million yen

As shown in the table above, the higher the leverage ratio, the larger the amount of money you can trade

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However, losses will also increase proportionally

Beginners should start with leverage in the range of 200x to 400x to get a feel for leverage while keeping risks to a minimum

The leverage ratio varies depending on the stock

In ThreeTrader, the maximum leverage varies depending on the instrument being traded

For example, major currency pairs (such as USD/JPY) can be traded at up to 1,000x leverage, but CFDs for gold and crude oil are restricted, and cryptocurrency CFDs are set at 100x leverage or less

Checking your account type and the leverage ratio of the target securities before trading is essential for safe trading

Let's check ThreeTrader's leverage limit rules

ThreeTrader has the following leverage restrictions:

  1. Having a large account balance can sometimes lower your leverage
  2. Restrictions may be temporarily imposed on weekends or before important news events
  3. When using high leverage, you also need to pay attention to your margin maintenance ratio

Here, let's look at the criteria for when leverage restrictions are imposed in ThreeTrader and the corresponding leverage ratios

Having a large account balance can sometimes lower your leverage

With ThreeTrader, leverage is automatically reduced as your account balance increases

Be aware that as your account balance increases, you will be required to deposit more margin

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Account balance (USD)Maximum leverage
~$5,0001,000 times
$5,001–$20,000500 times
Over $20,001200 times

Specifically, if your account balance exceeds $5,000, your maximum leverage will be limited to 500x, and if it exceeds $20,000, it will be limited to a maximum of 200x

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If you want to maintain high leverage, one strategy is to withdraw profits and keep your balance at a certain amount

The maximum leverage varies depending on the stock

As a general rule, leverage of up to 1,000x is available on ThreeTrader for major currency pairs, minor currency pairs, and gold

Other CFD instruments and exotic currency pairs have individual maximum leverage limits set at 500x or less

For specific leverage information for each stock, please see View a list of leverage for each stock in ThreeTrader

Restrictions may be temporarily imposed on weekends or before important news events

ThreeTrader may temporarily restrict leverage at the following times for risk management purposes, such as before the market closes on weekends or before important economic indicators are released

  • Friday before market close (30 minutes to 1 hour before)
  • Before major economic indicators and statements by key figures
  • Liquidity decreases before public holidays

For example, may be temporarily limited to 100x or 200x

The restrictions will be lifted within a few hours to a day, but if you plan to hold your position overnight, it's important to have sufficient margin

When using high leverage, you also need to pay attention to your margin maintenance ratio

Using high leverage means that even small price movements can cause significant fluctuations in the margin maintenance ratio

ThreeTrader has a forced stop-loss level set at a margin maintenance ratio of 20%, and there is a risk of a forced stop-loss being executed if the margin maintenance ratio drops drastically due to excessively high leverage

Leverage can be a powerful tool for making large profits from small amounts of capital, depending on how it's used, but at the very least, you should thoroughly implement the following risk management measures

  • Always set a stop-loss line
  • Diversify your positions to reduce risk
  • Maintain a sufficient margin balance (at least a maintenance ratio of 200%)

For example, when trading with 1,000x leverage, a few pips of adverse movement can cause your margin maintenance ratio to drop drastically. Always check your account's margin maintenance ratio and trade within a safe range

View a list of leverage options for each instrument in ThreeTrader

Here, we will introduce the leverage for each instrument on ThreeTrader in the following order

  1. Leverage for Forex (Major, Minor, and Exotic Currency Pairs)
  2. Leverage for precious metal CFDs (gold, silver, etc.)
  3. Leverage of energy CFDs (crude oil, natural gas, etc.)
  4. Leverage of stock index CFDs (Nikkei 225, NASDAQ, etc.)
  5. Leverage for cryptocurrency CFDs (Bitcoin, Ethereum, etc.)

In ThreeTrader, the maximum leverage set for each instrument varies significantly, so be sure to check it beforehand

Leverage for Forex (Major, Minor, and Exotic Currency Pairs)

The maximum leverage for FX currency pairs handled by ThreeTrader differs depending on whether they are major currency pairs, minor currency pairs, or exotic currency pairs, as follows:

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BrandEffective margin less than $5,000Effective margin of $5,000 or more
Major currency pairs1,000 times500 times
Minor currency pairs1,000 times500 times
Exotic currency pairs100 times100x magnification (HUF is 50x magnification)

The maximum leverage for major and minor currency pairs will be 1,000x

however,Be aware that for exotic currency pairs with low liquidity, the maximum leverage is 100xIt is required

The table below summarizes the exotic currency pairs that have restrictions on maximum leverage

List of Exotic Currency Pairs
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symbolCurrency pair composition
AUDCNHAustralian Dollar/Chinese Yuan (Offshore)
AUDZARAustralian Dollar / South African Rand
CHFHUFSwiss Franc / Hungarian Forint
CHFZARSwiss Franc / South African Rand
μRCNHEuro/Chinese Yuan (Offshore)
EURCZKEuro/Czech Koruna
EURHKDEuro/Hong Kong Dollar
EURHUFEuro/Hungarian Forint
RNOKEuro/Norwegian Krone
EURSEKEuro/Swedish Krona
EURTRYEuro/Turkish Lira
GBPNOKBritish Pound / Norwegian Krone
GBPSEKBritish Pound / Swedish Krona
NOKSEKNorwegian Krone / Swedish Krona
NZDSEKNZ Dollar / Swedish Krona
USDCNHUS Dollar/Chinese Yuan (Offshore)
USDCZKUS Dollar / Czech Koruna
USDDKKUS Dollar / Danish Krone
USDHKDUS Dollar / Hong Kong Dollar
USDHUFUS Dollar / Hungarian Forint
USDMXNUS Dollar / Mexican Peso
USDNOKUS Dollar / Norwegian Krone
USDRUBUS dollar / Russian ruble
freeSEKUS Dollar / Swedish Krona
USDTRYUS Dollar/Turkish Lira
USDZARUS Dollar / South African Rand

Leverage for precious metal CFDs (gold, silver, etc.)

ThreeTrader's precious metals CFDs have different maximum leverage levels for gold and other instruments

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BrandEffective margin less than $5,000Effective margin of $5,000 or more
XAUUSD
Gold/US Dollar
1,000 times500 times
XAGUSD
Silver/US Dollar
200 times100 times
XPTUSD
Platinum/USD
200 times100 times

Gold on ThreeTrader can be traded with leverage up to 1,000x. However, silver and platinum are limited to a maximum leverage of 200x

Please note that once your margin balance exceeds the equivalent of $5,000, the leverage for gold will be limited to a maximum of 500x, and for other assets to a maximum of 100x

On weekends and public holidays, all precious metal CFDs are limited to a maximum leverage of 100x

Leverage of energy CFDs (crude oil, natural gas, etc.)

The leverage for energy CFDs offered by ThreeTrader is as follows:

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BrandEffective margin less than $5,000Effective margin of $5,000 or more
XBRUSD
Brent Crude Oil/US Dollar
200 times100 times
XTIUSD
WTI Crude Oil/US Dollar
200 times100 times

Energy CFDs typically have leverage of up to 200 times

However, please note that if your effective margin exceeds the equivalent of $5,000, your leverage will be limited to a maximum of 100x

Regarding energy CFDs, leverage is limited to a maximum of 20 times on weekends and public holidays

Leverage of stock index CFDs (Nikkei 225, NASDAQ, etc.)

ThreeTrader allows you to trade all stock index CFD instruments with leverage up to 500x

Furthermore, since leverage restrictions based on margin balance do not apply to stock index CFDs, you can trade with a fixed margin without the hassle of withdrawals

However, please note that on weekends and public holidays, leverage is uniformly limited to a maximum of 100x

Leverage for cryptocurrency CFDs (Bitcoin, Ethereum, etc.)

ThreeTrader's cryptocurrency CFDs can be traded with a maximum leverage of 200x

Cryptocurrency CFDs do not have a maximum leverage limit based on the margin balance

Furthermore, because the cryptocurrency market is active even on weekends and holidays, unlike other CFD instruments, there are no leverage restrictions, and you can trade with 200x leverage.

How to set and change leverage in ThreeTrader

Here's how to change your account leverage in ThreeTrader

Log in to your ThreeTrader member page

Log in to your ThreeTrader member page

First, log in to your ThreeTrader member page

View a list of ThreeTrader trading accounts

View a list of ThreeTrader trading accounts

When you log in to your ThreeTrader member page, you can check the maximum leverage currently set for your account in the "Leverage" column of the trading account list that is displayed first

Open the leverage change screen

Open the leverage change screen

Open the menu for the account whose leverage you want to change and click "Change Leverage"

Enter your date of birth

Enter your date of birth

To change your leverage, you will need to verify your date of birth

Select your date of birth and press "Confirm"

Change the maximum leverage

Change the maximum leverage

Select the maximum leverage you wish to change and press "Confirm" to complete the change

Points to note when using leverage in ThreeTrader

Here, we will explain five important points to keep in mind when trading with leverage on ThreeTrader

  1. High-leverage trading carries the risk of significant losses
  2. There is no margin call with zero-cut protection, but losses are still possible
  3. Spreads tend to widen when economic indicators are released
  4. There is also a limit to the number of lots you can hold at one time
  5. To use it safely, it is essential to manage your funds carefully

By utilizing leverage, it is possible to generate large profits from a small amount of capital

While leverage offers high potential returns, be aware that misusing it can lead to significant losses

High-leverage trading carries the risk of significant losses

ThreeTrader allows you to use leverage up to 1,000 times,This means that even slight price movements can cause significant fluctuations in your account balance

For example, if you make a trade with a margin of 10,000 yen and leverage it 1,000 times, you will be holding a position worth 10 million yen

If the dollar-yen exchange rate moves in the opposite direction by just 0.15 yen (15 pips), a loss of approximately 15,000 yen will occur, and your capital will disappear in an instant

There is no margin call with zero-cut protection, but losses are still possible

ThreeTrader has a zero-cut system, so even if the market changes drastically and your account balance goes negative, you will not be required to make additional deposits (margin calls)

However, this does not mean that losses themselves will disappear; there is still a significant possibility of losing funds within the range of the deposited amount.

During periods of rapid market fluctuations, positions can be liquidated in an instant, so it's essential to always be aware of the risks involved

Spreads tend to widen when economic indicators are released

ThreeTrader is known for its narrow spreads under normal circumstances, but the spreads can widen suddenly immediately before and after the release of economic indicators or statements by key figures

The reason spreads widen when these economic indicators are released is that liquidity temporarily decreases, making trading prices unstable

When the spread widens, the costs of entering and exiting trades increase, making it easier for profit and loss calculations to become inaccurate

There is also a limit to the number of lots you can hold at one time

ThreeTrader offers extremely high leverage, up to 1,000 times, but there is a limit to the number of lots that can be held in a single trade

For FX currency pairs, the maximum trading volume per transaction is 80 lots. The larger the lot size, the higher the required margin

Furthermore, as your margin increases, ThreeTrader imposes leverage restrictions in stages, so you will need a considerable amount of reserve capital to conduct large-scale trades

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The larger the position you take, the more account funds you'll need, so it's important to plan your trades while being mindful of lot size management

To use it safely, it is essential to manage your funds carefully

To use leverage effectively, thorough fund management is essential

Generally, the risk for a single trade is limited to about 1-2% of the account balance

This percentage of acceptable risk is known as the "2% rule," and it makes it easier to maintain sound trading while protecting your capital

When trading with ThreeTrader, keep the following risk management considerations in mind, including your acceptable risk percentage

  • Set a stop-loss level for each trade in advance
  • Adjust the lot size according to the amount of capital
  • Set a limit on the number of trades per day

While leverage can potentially lead to large profits, it can also cause capital losses if misused

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In environments like ThreeTrader, where high leverage is available, being mindful of a balanced fund allocation and trading within reasonable limits will lead to consistent results

Frequently Asked Questions about Leverage in ThreeTrader

summary

ThreeTrader's leverage limits vary depending on the trading instrument: up to 1,000x for FX, 1,000x for gold, and up to 200x for cryptocurrency CFDs

Furthermore, as your account balance increases, leverage restrictions will be gradually imposed, so it's important to always keep track of your margin balance

While high leverage is attractive, it also carries the risk of rapidly depleting your capital. Therefore, trading with proper lot size management and risk control in mind will lead to consistent results

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