Top 10 Questions
If you wish to keep your current trading conditions without changes, including leverage available for professional customers, you will need to qualify as a Professional Client.
As a Professional Client with Libertex, you will be able to trade without any leverage-related limits.
Please note that the Company will apply a qualification test to assess your expertise and knowledge.
In this test two of the following criteria should be satisfied:
(i) your trading averaged 10 significantly sized leverage transactions per quarter over the last 4 quarters
(ii) you have a financial instrument portfolio, including cash deposits, exceeding €500,000
(IV) You have worked in the financial sector in a professional position, requiring knowledge of derivatives trading, for at least a year.
If you want to apply for Professional Client status click here
Please note that you can only open a live account and use it for trading purposes if you are at least 18 years old or of legal age, whichever is greater.
1. To sign up for an account, please fill out the Email and Password fields in the mobile app sign up dialog or via Libertex Web platform at https://app.libertex.com/#modal_register
You can also use your Facebook details to register a trading account.
2. Once you have signed up, you will be asked a few questions by the trading platform. Please answer those.
3. After making your first deposit, you will be prompted to upload your documents for identification purposes, such as your ID and proof of residence.
4. Upload the documents following the instructions given by the trading platform and wait for the verification process to complete. As a rule, we typically verify newly registered accounts within 3 business days.
As a regulated company we are required to verify your identity, within 15 days of your first deposit.
To verify your account please:
- Send us a coloured scanned copy of your ID card or driving license (we require a copy of both sides of the card). Alternatively, you can send us a double page scan of your open passport or residence permit.
- Send us a scanned copy of a utility bill or bank statement issued within the last 6 months. Your full name, address, and the date of issue of the letter must be clearly visible.
The basic trading principle within Libertex platform is the following: the result of a trade changes in proportion to the price of the underlying asset the trade is based on.
To manage your money more effectively, a trader can use the Multiplier Feature, which is set at the moment of opening a trade. The Multiplier is a value that determines how the trade result changes relative to the underlying asset price.
For asset trading, you can only use integer numbers as multiplier values. To view the maximum possible multiplier value for each trading instrument, please refer to the Trading Instrument Specifications.
Stop out level is one of the basic trading conditions in Libertex.
If the stop out level is 100%, this means your position will be closed automatically when its loss is 100% or more of the initial investment amount. When stop out level is in place, the trade is closed at the first price available at the moment of closing, meaning that the eventual result may be different from the one expected based on the stop loss level you specified.
Stop out level is set for 100% for all financial instruments, except CFD's on stocks, where it is 80%.
Leverage is the ratio between the volumes being traded, i.e. the total investment amount with the multiplier applied, and the used margin amount.
What is the maximum leverage for each asset class?
a. 30:1 for major currency pairs (3.33% margin)
b. 20:1 for minor currency pairs, gold, and major indices (5% margin)
c. 10:1 for commodities other than gold and minor indices (10% margin)
d. 5:1 for individual equities and other reference values (20% margin)
e. 2:1 for cryptocurrencies (50% margin)
How will this affect my trading account with Libertex?
When you trade any asset, the leverage applied depends on the class such an asset belongs to.
With higher leverage, you need less funds (margin) to open a position, which allows you to open big trades while investing just a fraction.
Conversely, if the leverage is low, you will need more own funds to open your position.
How do I know the total amount of the trades I can open when my account balance is N?
Maximum Amount = Free Margin * Max Leverage for the asset class in question
Let's assume now your account balance is again €10,000, but you want to open multiple trades on EUR/USD.
This is a major currency pair, so the maximum leverage here is 30:1.
Thus, your maximum overall trade amount with multiplier applied is 10,000*30=€300,000.
So, you are free to open any number of EUR/USD trades you want, but their total value, including the multiplier, must not exceed €300,000.
Let's assume your account balance is again €10,000, and you want to open multiple trades on gold.
For minor currency pairs, gold, and major indices the maximum leverage is 20:1.
Thus, your maximum overall trade amount with multiplier applied is 10,000*20=€200,000.
If you want to trade without any restrictions, you can become a Professional Trader. Click here to learn how
To calculate your profit or loss for a Long trade, please use the following formula:
PL = S * M * ( Ec / E0 – 1 ) – C , where:
PL is your profit or loss
S is your investment amount
M is the multiplier value in use
Ec is the close price
Ec is the open price
C is commission charged for your transaction
To calculate your profit or loss for a Short trade, please use the following formula:
PL = S * M * ( 1- Ec / E0) – C
In case your current loss on a transaction reaches 100% (or 80% for stocks) of your investment amount, your transaction is subject to immediate closure. This is to ensure that your maximum risk is limited with your investment amount, i.e. your transaction will not affect your funds that are not invested in it.
Let's assume you have opened a long Dow Jones trade worth EUR 1,000 with multiplier at 10, at 15,345 and closed it at 15,515, your transaction fee being EUR 1.70, and the rollover fee at - EUR 3.80.
Thus, what we get is: 1,000 * 10 * ( 15,515 / 15,345 – 1) – 1.70 – 3.80 = 105.28.
Your transaction profit is EUR 105.28.
Now let's assume we open an identical trade, but a short one:
1,000 * 10 * (1 – 15,515 / 15,345) – 1.70 – 0.20 = -112.68
Here, your loss would be EUR 112.68.
To reset your account password, please go to our web based platform at https://app.libertex.com/#modal_restorePass or use the menu in Libertex mobile app.
Whichever option you choose, you will need to provide the email address you specified when signing up with us, and click Get My New Password.
You will then receive an email with a link to reset your password.
Follow this link to create a new password to access our trading platform.