The Funded Trader Leverage

The Funded Trader offers various leverage options for traders in India. Leverage allows traders to control larger positions with a smaller amount of capital. Our leverage options are designed to provide flexibility while promoting responsible risk management. This guide outlines the leverage available across different account types, associated risks, and how to effectively use leverage in your trading strategy.

Leverage Options by Account Type

The Funded Trader provides different leverage options depending on the account type and financial instrument.

Here’s an overview of the maximum leverage available:

Standard Challenge

• Forex: 1:200
• Indices: 1:20
• Commodities: 1:40
• Gold: 1:40

Rapid Challenge

• Forex: 1:100
• Indices: 1:20
• Commodities: 1:40
• Gold: 1:40

Royal Challenge

• Forex: 1:50
• Indices: 1:20
• Commodities: 1:40
• Gold: 1:40

Knight Challenge

• Forex: 1:30
• Indices: 1:20
• Commodities: 1:30
• Gold: 1:30

Dragon Challenge

• Forex: 1:100
• Indices: 1:20
• Commodities: 1:40
• Gold: 1:40

It’s important to note that these are maximum leverage ratios. Traders can choose to use lower leverage if desired.

How Leverage Works at The Funded Trader

Leverage functions as a loan from the broker to the trader, allowing for larger position sizes. For example, with 1:100 leverage, a trader can control a $100,000 position with just $,000 of their own capital. Here’s how it works:
1. Select your desired position size
2. The platform calculates the required margin based on leverage
3. Your available balance must cover the margin requirement
4. Profits and losses are calculated based on the full position size
It’s crucial to understand that while leverage can amplify profits, it also increases potential losses.

Risk Management with Leverage

Proper risk management is essential when using leverage. The Funded Trader recommends the following practices:
• Use stop-loss orders to limit potential losses
• Avoid risking more than 1-2% of your account balance on a single trade
• Understand the impact of leverage on your positions
• Regularly monitor your account’s margin level
• Be aware of margin call and stop-out levels
Remember, higher leverage increases both potential profits and risks.

Adjusting Leverage

Traders can adjust their leverage within the platform:
1. Log in to your trading account
2. Navigate to the account settings
3. Select “Leverage”
4. Choose your desired leverage ratio
5. Confirm the changes
Note that changing leverage may affect open positions and margin requirements.

Margin Requirements

Margin requirements vary based on the leverage used and the financial instrument traded. Here’s a general formula:
Margin Requirement = Position Size / Leverage
For example, a ₹100,000 position with 1:100 leverage requires ₹1,000 in margin.

Leverage and Account Types

Different account types at The Funded Trader have specific leverage restrictions:

Account Type	Max Forex Leverage	Max Indices Leverage	Max Commodities Leverage
Standard	1:200	1:20	1:40
Rapid	1:100	1:20	1:40
Royal	1:50	1:20	1:40
Knight	1:30	1:20	1:30
Dragon	1:100	1:20	1:40

Consider these limitations when choosing your account type.

Leverage During Evaluation Phases

During the evaluation phases, leverage restrictions may apply:
• Phase 1: Full leverage available as per account type
• Phase 2: Leverage may be reduced to promote conservative trading
• Funded Account: Full leverage restored upon successful evaluation
Specific leverage restrictions for each phase are communicated upon account activation.

Impact of Leverage on Drawdown Limits

Leverage affects how quickly drawdown limits can be reached. The Funded Trader implements the following drawdown limits:
• Maximum Daily Loss: 5% of account balance
• Maximum Total Loss: 10% of account balance (varies by account type)
Higher leverage can lead to reaching these limits more quickly, requiring careful position sizing.

Leverage and Lot Sizes

Leverage directly impacts the lot sizes you can trade. Here’s an example using a ₹100,000 account:
• 1:100 leverage: Maximum standard lot size of 10
• 1:50 leverage: Maximum standard lot size of 5
• 1:20 leverage: Maximum standard lot size of 2
Always consider your account balance and risk tolerance when determining position sizes.

Comparing Leverage to Other Prop Firms

The Funded Trader’s leverage options are competitive within the prop trading industry. Here’s a comparison:

Prop Firm	Max Forex Leverage	Max Indices Leverage
The Funded Trader	1:200	1:20
FTMO	1:100	1:20
MyForexFunds	1:100	1:20

Our higher leverage options provide more flexibility for experienced traders.

Educational Resources on Leverage

The Funded Trader provides educational materials to help traders understand and use leverage effectively:
• Video tutorials on leverage and risk management
• Webinars discussing advanced leveraging strategies
• Articles explaining the pros and cons of different leverage ratios
• Practice accounts to test leveraging strategies without risk
We encourage all traders to utilize these resources before trading with high leverage.

Common Leverage Mistakes to Avoid

When using leverage at The Funded Trader, avoid these common pitfalls:
1. Over-leveraging positions
2. Neglecting to use stop-loss orders
3. Ignoring margin requirements
4. Failing to adjust leverage during volatile market conditions
5. Using maximum leverage on every trade
Responsible use of leverage is key to long-term trading success.

Trader Reviews on Leverage

Here are some reviews from Indian traders regarding leverage at The Funded Trader:
“The 1:200 leverage on forex pairs gives me the flexibility I need for my scalping strategy.” – Rajesh K., Chennai
“I appreciate the ability to adjust leverage. It helps me manage risk during major economic events.” – Sneha P., Mumbai
“The leverage options are good, but I wish there was more flexibility for indices trading.” – Vikram S., Delhi