Leverage is a core component of successful trading, but simultaneously, it ranks among the most misunderstood and misused concepts. Since MT4 is the industry-leading Forex trading platform, I have created a step-by-step guide on how traders can check and change leverage on MT4.
How to Check the Leverage on Your Metatrader 4 Account
The precise steps may differ slightly between the MT4 Forex brokers, but that should apply to the layout, wording, and navigation.
Here is a step-by-step guide to checking your leverage on MT4:
1. Log into your secure client area.
2. Navigate to the accounts section. Most brokers have it in the left menu bar, the top menu, or the homepage of the secure client area.
3. Locate the MT4 account where you wish to check the leverage. Some brokers display it within the overview. Otherwise, click the pencil or the hamburger menu icon next to the account to retrieve your leverage information.
Changing Leverage Settings on MT4
Changing leverage settings with the high-leverage Forex brokers follows the same process as above, with the modification below.
Follow the above steps, and you can change your MT4 leverage by doing the following:
1. Click the pencil or the hamburger menu icon next to the account where you wish to change the leverage.
2. Select the desired leverage from the drop-down menu, which your broker defines.
3. Confirm your choice, but if you decrease your leverage, your margin requirement will increase, and you must adjust your lot size and risk management accordingly.
Tips and Takeaways to Changing Leverage on MT4
A useful tip is to focus on risk mitigation aspects like stop loss orders and lot size management, as these factors determine your exposure, rather than your leverage settings.
It is also a good idea to familiarize yourself with the difference between account leverage and utilized portfolio leverage. The latter leverage is notably lower but has a more significant impact.
Why Would You Change the Leverage on Your Metatrader Account?
Traders must master trading psychology, risk management, lot size management, and proper order placement before considering leverage. Therefore, traders may start with 1:1 leverage and gradually increase it until they learn how to properly use all necessary components of leveraged trading at the best high-leverage Forex brokers.
Altering your Leverage on MetaTrader – Pros and Cons
Before altering your leverage on MetaTrader with the best MT4 Forex brokers, I recommend that you consider the pros and cons.
The Pros of Altering Your Leverage on MetaTrader
- A gradual increase in leverage as part of the educational process
- The ability to leverage knowledge and improve profitability
- An opportunity to take advantage of more trading opportunities
- An increase in capital and portfolio efficiency
- A magnification of trading profits
The Cons of Altering Your Leverage on MetaTrader
- A magnification of trading losses due to the lack of proper risk management and lot size management
- Many traders use leverage with insufficient trading capital
- A rush to leverage Forex trading without the educational and trading background
Bottom Line
Traders can check and change leverage on MT4, but they should master psychology, risk management, lot size management, and proper order placement before considering leverage. Risk and lost size management define risk, not the account leverage.
