How to set Leverage parameters in Paper Trading
The leverage parameters are set in the account creation menu.
By default, the fields are pre-filled with the leverage values most commonly used by brokers and exchanges. For example, the margin for the E-mini S&P 500 futures is approximately 5%. The default leverage value in the futures field is 20:1, corresponding to a 5% margin.
You can set the leverage value for each asset class to recreate a simulation environment that suits your needs. To do this, select a value from the drop-down list for each asset class.
Once an account is created, the corresponding leverage will be applied to each order placed on this account.
You can set different leverage parameters for other accounts.
View settings
You can always view the leverage parameters set for the selected Paper Trading account by clicking the settings button next to the account.
Account reset
You can only change the current leverage settings on an account by resetting all account settings. After resetting the account, you can set new leverage values for each asset class on that account.
Please remember that resetting the account will result in all trading history on that account being deleted.
Always remember, Look First – Then Leap
- The higher the leverage, the more borrowed funds you can use and the higher the risk of loss.
- Brokers may set their initial and maintenance margin requirements, so always check the terms with your broker.
- Ensure you understand the risks associated with margin trading and use bracket orders to manage your risks.