Libertex for Beginners
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.
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