Question 1

How do you calculate the minimum leverage required for a forex trade?

Accepted Answer

Minimum leverage = position notional value / account equity. Your risk per trade and stop-loss distance fix the position size (lots), the lots times the notional per lot gives total exposure, and dividing that by your equity gives the minimum leverage a broker must offer to place the trade.

Question 2

What is the maximum retail forex leverage by region?

Accepted Answer

Retail forex leverage is capped at 1:50 in the United States (NFA/CFTC) and 1:30 across the European Union (ESMA), United Kingdom (FCA) and Australia (ASIC). Prop firms and offshore brokers operate outside these frameworks.