BlackBull Markets Leverage

BlackBull Markets ranks among the most attractive multi-asset brokers for short-term traders and long-term investors. During my comprehensive review of the broker, I evaluated its leverage conditions. So, how do BlackBull Markets’ leverage terms measure up against competitors? Learn about the pros and cons of the BlackBull Markets leverage conditions and how leverage impacts your CFD trading. I also want to stress the importance of risk management and lot size management in leveraged trading, which are the main factors determining risk and not the leverage ratio.

Regulation and CFD Leverage Limits at BlackBull Markets

The maximum BlackBull Markets leverage listed under the BlackBull Markets account types applies to Forex majors, Forex minors, gold, and silver. Liquidity determines maximum leverage for other assets, and not all assets within a sector qualify for maximum BlackBull Markets leverage.

Here are the regulators and trading leverage limits at BlackBull Markets:

1. Regulator: FMA (Financial Markets Authority, New Zealand)

• Compensation Scheme: No
• Maximum Forex Leverage: 1:500

2. Regulator: FSA (Seychelles Financial Services Authority)

• Compensation Scheme: Yes
• Maximum Forex Leverage: 1:500

All retail traders receive the following:

• Segregated client deposits from corporate funds
• Negative balance protection
• Automatic margin call at 75% margin level
• Forced liquidation below the 50% margin close-out level
• Tiered leverage

How Leverage Works in CFD Trading

Leverage is the best trading tool available to traders who understand how to use it, because it provides a capital injection by decreasing the margin requirement to open and hold positions. For example, 1:500 BlackBull Markets leverage means that for each $1, traders can control a $500 position. Therefore, traders can achieve greater diversification with smaller portfolios or increase their earnings potential by borrowing capital from the broker.

Please note that leverage also magnifies downside moves and requires traders to adjust their risk management and lot sizes accordingly. BlackBull Markets charges swap rates on leveraged overnight positions, increasing final BlackBull Markets fees per trade.

BlackBull Markets Leverage by Asset Type

During my BlackBull Markets broker review, I found that while the BlackBull Markets leverage depends on the asset type, not all assets within an asset class qualify for maximum leverage. The trading platform lists the maximum leverage ratios under “contract specifications”, and traders can explore trading with leverage in the BlackBull Markets demo account.

• BlackBull Markets offers three leverage tiers and lowers the maximum BlackBull Markets leverage with an increase in lot sizes
• Tiered leverage assists risk management for BlackBull Markets and its traders
• Tier one applies to lot sizes up to 25 lots
• Tier two applies to lot sizes above 25 lots but below 50 lots, and BlackBull Markets lowers the maximum BlackBull Markets leverage by 50% (for example, from 1:500 to 1:250)
• Tier three applies to lot sizes above 50 lots, and BlackBull Markets lowers the maximum BlackBull Markets leverage by 80% (for example, from 1:500 to 1:100)
• Muslim traders using the BlackBull Markets Islamic account also qualify for BlackBull Markets leverage

Can You Set Leverage Manually at BlackBull Markets?

Many brokers, including BlackBull Markets, allow traders to set their leverage manually. Please note that the manual leverage settings cannot exceed the maximum BlackBull Markets leverage determined by the asset type.

How Do You Change Leverage at BlackBull Markets?

Traders can change the BlackBull Markets leverage from the secure client area. Please note that the BlackBull Markets minimum deposit applies to select account types.

Here is how to change your BlackBull Markets leverage:

• Navigate to the “Accounts Tab.”
• Choose your account and click the three-dot menu.
• Select “Edit Settings.”
• Choose your leverage and click “Submit.”

BlackBull Markets Leverage – Pros and Cons

Traders should consider the pros and cons of BlackBull Markets’ leverage, as this will impact the broker’s margin requirements and influence their BlackBull Markets withdrawal.

The Pros of Blackbull Markets Leverage

• Negative balance protection
• Margin calls at 75% account margin
• Automatic stop-out levels at 50% account margin
• Tiered leverage
• Low swap rates

The Cons of Blackbull Markets Leverage

• None

Bottom Line

BlackBull Markets’ leverage maxes out at 1:500, depending on the asset, liquidity, and order lot size. If traders fail to meet the margin call, BlackBull Markets issues a margin call followed by forced liquidations. At all times, negative balance protection is available.

FAQs

What is the margin at BlackBull Markets?

The margin is the capital requirement to open a position and depends on BlackBull Markets’ leverage. The higher the leverage, the less margin traders pay. For example, a Forex trader opening a position with 1:500 leverage has a 0.20% margin requirement. Therefore, the trader only pays 0.20% of the trade size from their capital and borrows the remaining funds from BlackBull Markets.

What is the maximum lot size at BlackBull Markets?

During my BlackBull Markets review, BlackBull Markets did not list the maximum lot sizes. As a liquidity provider and industry-leading broker, the maximum lot size should range between 50 and 500 lots, depending on the asset and liquidity. Two unverified sources claim the maximum BlackBull Markets lot size per trade is 200 lots.

What is the maximum leverage at BlackBull Markets?

The maximum BlackBull Markets leverage is 1:500, which applies to Forex majors, Forex minors, gold, and silver for lot sizes below 25 lots.

By Tobi Amure

Tobi Opeyemi Amure has more than seven years of experience as a financial market analyst. He holds a Bachelor's Degree from Obafemi Awolowo University. Tobi's main area of expertise is in personal finance and the Forex industry. He has contributed to top platforms such as Investopedia, GoBankingRates, and Investing.com, where his expertise in Forex markets and digital assets is widely recognized. Tobi’s engaging storytelling and data-driven analysis have earned him a feature on Forbes and TheStreet, setting him apart as a trusted voice in Forex and online finance. In his free time, he explores emerging Forex trends, refines his market strategies, and actively engages with the global finance community.

Reviewer DailyForex.com Team

The DFX Team at DailyForex is a group of veteran financial analysts, traders, and brokerage industry experts dedicated to producing in-depth broker reviews and cutting-edge market insights, plus analysis of market trends. Holding over 16 years of experience in global financial markets, and 4 B.A. level academic qualifications in relevant degrees, we conduct thorough, unbiased evaluations of brokers to enable traders make informed decisions, using the most advanced methodology in the industry. Also, the DFX team is involved in generating technical analysis, signals, and trading strategies, with a consistent commitment to accuracy and transparency. Whether you’re a beginner or a professional trader, the DFX Team works to ensure you have the tools and insights you need to succeed as a trader in the retail CFD industry.

Fact-checker Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.