Leverage is the ratio between the size of a position and the margin the platform sets aside to hold it: at 1:100, $1,100 of margin holds one lot of EURUSD worth $110,000. It decides how large a position you can open, not how much each pip is worth, so the loss on a trade depends on the lot size and the stop distance whatever the leverage. On WhitePips CFD plans the ceiling is 1:100 on Edge 1 Step, Edge 2 Step and Prime 2 Step, 1:50 on Prime 1 Step, 1:33 on Instant Pro and 1:25 on Instant Go.
Leverage is often read as a measure of risk. It is closer to a measure of permission. This post explains what leverage and margin are, why they do not change the loss per pip, what margin call and stop out mean on MT5, and why Max. Exposure and the loss limits are the numbers that shape a funded account in practice.
What is leverage in trading?
A leveraged product lets you hold a position larger than the money set aside for it. The ratio between the two is the leverage. At 1:100 every $1 of margin supports $100 of position; at 1:25 every $1 supports $25.
The position itself is full size. A one-lot EURUSD trade at 1:100 gains or loses exactly what a one-lot trade with no leverage would: $10 for each pip. Leverage changes the deposit, not the exposure. That is why leveraged products can lose money quickly: a small price move on a large position is a large amount of money relative to the margin and to the account.
What is margin, and how is it calculated?
Margin is the part of the account's equity the platform locks while a position is open. For a forex position it is the notional divided by the leverage:
Margin = lots × contract size × price ÷ leverage, converted into dollars where the pair needs it.
One lot of EURUSD at 1.1000 is $110,000 of notional. The margin it needs:
- At 1:100: $1,100.
- At 1:50: $2,200.
- At 1:33: about $3,333.
- At 1:25: $4,400.
Some symbols, such as indices or crypto, can carry their own margin settings on the server, so check the symbol's specification in MT5 rather than assuming the account figure applies to everything.
MT5 shows the live picture in the Trade tab of the Toolbox: balance, equity, margin in use, free margin and margin level. Free margin is equity minus the margin in use, and it is what is left for new positions. Margin level is equity divided by margin in use, as a percentage. With $100,000 of equity and $4,400 of margin in use, the margin level is about 2,273%.
Does leverage change how much I lose per pip?
No, and this is the point worth holding on to. Loss per pip comes from the position size alone:
- 0.50 lots of EURUSD is $5 per pip at 1:100, at 1:50 and at 1:25.
- A 40-pip stop on that position loses $200 at any of those leverages.
- The only difference is the margin: $550 at 1:100, $1,100 at 1:50 and $2,200 at 1:25.
What higher leverage does change is how large a mistake the platform will accept. At 1:100 the margin on a $50K account would allow far more than any sensible risk budget calls for. Lower leverage only means the platform refuses an oversized order sooner. It does not make a correctly sized trade safer or riskier.
What leverage does each WhitePips plan have?
The maximum leverage is printed on every CFD plan as a ceiling. The published figures are:
- Edge 1 Step: 1:100
- Edge 2 Step: 1:100
- Prime 1 Step: 1:50
- Prime 2 Step: 1:100
- Instant Pro: 1:33
- Instant Go: 1:25
Each plan publishes the same figure for the evaluation and for the funded stage, at every account size. The figure that binds your account is the one in its Plan Specification at purchase. At 1:100, a $50K account could in principle open $5,000,000 of notional; at 1:33, a $50K Instant Pro could open $1,650,000.
Futures accounts have no leverage figure. They are limited by the number of contracts open at once instead: 2 Mini or 20 Micro on a $25K One Step, 4 Mini or 40 Micro on a $50K One Step. A micro is a tenth of a mini, so the two figures are one limit written twice. The futures plans list every size.
Why does Max. Exposure matter more than leverage?
Because on most account sizes it is the tighter of the two. Max. Exposure caps the combined notional of all open positions: $1,000,000 on a $50K account, which is 2,000% of the balance. Against the $5,000,000 that 1:100 would allow on the same account, the exposure cap is one fifth. On a $100K account the cap is $1,250,000, against $10,000,000 at 1:100.
The exception is the smaller Instant accounts, where the lower leverage can bind first. A $10K Instant Go at 1:25 has margin for $250,000 of notional at its starting balance, below its $300,000 exposure cap. On a $5K Instant Pro, 1:33 allows $165,000 against a $200,000 cap. On those accounts MT5 refuses an order for lack of margin before the exposure rule comes into play.
Going over Max. Exposure is warning 1 of 2, not a hard breach. If the account is in profit at that moment, the profit is reset to the starting balance, with profitable days kept; a second time closes the account. The post on Max Exposure and floating loss covers the rule in full.
What are margin call and stop out?
On any MT5 account, two margin levels are set on the trading server. When the margin level falls to the first, the margin call level, the platform warns that free margin is running out. If it falls further, to the stop out level, the platform starts closing positions on its own, usually beginning with the one carrying the largest loss, until the margin level is back above the threshold.
The exact levels are a server setting, not a WhitePips rule, and they are not printed on the plan. Check what your MT5 account shows rather than carrying over a figure from another broker.
On a WhitePips account a margin call is not a demand for money. Every account is simulated, there is no negative balance and nothing to repay, and what a trader pays is the account fee. The loss limits are the real floor. On a $100K Prime 1 Step the Max Daily Loss is $4,000 (4%) and the Max Loss is $8,000 (8%), both measured on equity with open losses included, and reaching either ends the account. A position large enough to bring a margin call near is already far beyond what those limits allow for.
How should I use leverage on a funded account?
As a ceiling, not a target. The working order is the reverse of how leverage is usually presented:
- Decide the dollar risk per trade from the daily limit.
- Set the stop from the chart.
- Work out the lot size from the two.
- Check the notional against Max. Exposure, and only then look at the margin.
A worked example on the same $100K Prime 1 Step. Risk 0.5% of the account, $500, on EURUSD with a 25-pip stop: $500 divided by (25 × $10) is 2.00 lots. That is $220,000 of notional at 1.1000, well inside the $1,250,000 exposure cap, and it needs $4,400 of margin at 1:50, which leaves the margin level above 2,000%. Leverage played no part in the decision; it only confirmed that the trade could be opened.
The position size calculator does the first three steps. The risk disclosure puts the point plainly: the leverage and contract limits are ceilings, not recommendations, and trading at the maximum makes it much more likely that a loss limit is reached.