MetaTrader 4 (MT4) is a powerful trading platform used by millions of forex traders around the world. One of the most critical settings that every trader needs to understand is leverage. It can dramatically amplify profits, but it can also magnify losses. That’s why it’s essential to know how to check and change leverage settings on your MT4 account. In this comprehensive guide, you’ll learn everything you need to know, step-by-step.
What is Leverage in Forex Trading?
Leverage in forex trading allows you to control a larger position in the market with a smaller amount of actual capital. It’s like a loan from your broker that enables you to trade more than you have in your account.
For example, a leverage of 1:100 means you can trade $100,000 worth of currency with just $1,000 in your account. If the market moves in your favor, your profits can be huge. But if it moves against you, your losses can be just as large. That’s why leverage must be handled carefully.
Why Leverage Settings Matter
The leverage you choose affects your margin requirements, risk exposure, and ultimately your trading results. Brokers usually offer different leverage options, such as 1:50, 1:100, 1:200, or even 1:500. Choosing the right leverage depends on your strategy, risk tolerance, and account size.
If you’re a beginner, it’s wise to start with lower leverage to minimize risk. More experienced traders might use higher leverage but always with strict risk management.
Step-by-Step: How to Check Your Leverage on MT4
Before you can change your leverage, you need to know what your current leverage setting is. Here’s how to check it:
Step 1: Log In to Your MT4 Account
Open the MT4 platform and log in with your live or demo account credentials. You’ll see your account number and broker name in the Navigator window.
Step 2: Open the ‘Navigator’ Panel
Make sure the Navigator panel is visible. If it’s not, press Ctrl + N or go to View > Navigator.
Step 3: Right-Click on Your Account
In the Navigator panel, right-click on your account number and select “Login to Trade Account” to ensure you’re connected.
Step 4: Check Leverage in Broker’s Dashboard (Not MT4)
Here’s the tricky part: MT4 itself doesn’t directly show your leverage setting. You need to check your leverage through your broker’s client dashboard or user portal. Most brokers display leverage alongside account details.
Go to your broker’s website, log in to your account area, and locate the section showing account information. There you’ll find your current leverage setting.
Step-by-Step: How to Change Leverage on MT4 (via Broker Portal)
You can’t change leverage directly within the MT4 platform. Instead, you have to do it through your broker’s dashboard. Here’s how:
Step 1: Log in to Your Broker’s Client Portal
Open your broker’s website and sign in to your account using your username and password.
Step 2: Navigate to Account Settings
Look for a section called Account Settings, Trading Accounts, or something similar. Find the account for which you want to change the leverage.
Step 3: Select ‘Change Leverage’ or Similar Option
Click on the option to change leverage. It might be a button that says “Edit”, “Modify”, or “Change Leverage.”
Step 4: Choose Your Desired Leverage Ratio
You’ll see a drop-down list of available leverage ratios such as 1:50, 1:100, 1:200, etc. Select the one that suits your trading style and risk profile.
Step 5: Confirm the Change
Click “Submit”, “Confirm”, or “Save” to apply the new leverage setting. Most brokers update your leverage instantly, but some may take a few minutes or require approval.
Step 6: Log Back into MT4
After changing your leverage, log out and then log back into MT4 to refresh the connection. Your new leverage is now active, even if it’s not visible directly in MT4.
Tips for Choosing the Right Leverage
Here are a few pointers to help you choose wisely:
- Low Risk = Low Leverage: If you’re new or prefer low-risk trading, stick to 1:50 or 1:100.
- High Risk/Reward = High Leverage: Advanced traders might use 1:200 or 1:500, but always with strong risk management.
- Don’t Overtrade: High leverage doesn’t mean you should open massive positions.
- Understand Margin Calls: Higher leverage increases the chance of margin calls.
How to Calculate Leverage and Margin
Here’s a quick formula:
Margin Required = (Trade Size / Leverage)
Example:
- Trade Size: $100,000
- Leverage: 1:100
- Margin Required: $100,000 / 100 = $1,000
If your account balance is below this, your trade won’t be executed or you’ll face a margin call.
Risk Management When Using Leverage
Even with high leverage, smart traders protect their capital with good risk management. Here’s what you can do:
- Use stop-loss orders on every trade.
- Never risk more than 1–2% of your account on a single trade.
- Monitor your margin level and avoid overleveraging.
- Trade with a solid plan and consistent strategy.
What If You Can’t Change Leverage?
Sometimes, brokers restrict leverage changes on live accounts or in certain countries. If you can’t change it:
- Contact your broker’s support team.
- Open a new account with different leverage.
- Make sure your documents (KYC) are verified.
Conclusion
Checking and changing leverage on MT4 is simple once you understand that it’s done through your broker not the platform itself. Knowing how leverage works, how to use it responsibly, and how to manage your risk can set you apart as a disciplined trader.
Whether you’re just starting or already trading consistently, adjusting leverage to match your strategy is a key part of long-term success in forex trading. Always think of leverage as a tool not a shortcut and you’ll be trading smarter every time you log in to MT4.
FAQ
1. Can I change my leverage directly inside the MT4 platform?
No, you cannot change leverage directly within the MT4 platform. You need to log in to your broker’s client portal or dashboard to adjust your leverage settings. Once you update it there, the changes apply to your MT4 account.
2. How do I know what my current leverage setting is?
You can check your current leverage setting by logging into your broker’s client area. MT4 itself does not display your leverage. The broker’s dashboard will show your account details, including the leverage ratio assigned to your account.
3. Why is my broker not allowing me to change leverage?
Some brokers restrict leverage changes for regulatory reasons or based on the type of account you opened. If you cannot change your leverage, you might need to open a new account with the desired leverage or contact your broker’s support team for assistance.
4. What is the best leverage ratio for beginners?
For beginners, it’s recommended to use lower leverage such as 1:50 or 1:100. Lower leverage reduces risk exposure and helps protect your trading capital while you are still learning the market.
5. What happens if I use too much leverage?
Using too much leverage can amplify both your profits and your losses. If the market moves against your position, a highly leveraged trade can quickly lead to a margin call or even wipe out your account. Always use leverage responsibly with proper risk management strategies.
6. Does changing leverage affect my open trades?
Generally, changing your leverage setting does not affect existing open trades directly. However, it can impact your available margin and margin level. Always check your account balance and margin level after making any changes to avoid unexpected liquidations.
7. How long does it take for leverage changes to apply?
Most brokers update your leverage settings instantly after you submit a change. However, with some brokers, it might take a few minutes or require manual approval. Always double-check with your broker if you’re unsure.
