PrimeXBT Leverage

I analyzed the PrimeXBT leverage conditions during my review of the broker, examining the pros and cons of the PrimeXBT leverage conditions and how PrimeXBT leverage works in CFD trading. Should cryptocurrency traders use PrimeXBT? Use my analysis of Prime XBT leverage to make an informed decision for your portfolio and trading requirements, and to learn why I rank PrimeXBT among the best brokers for cryptocurrency traders. My analysis also stresses the importance of risk management and lot size management in leveraged trading, which is arguably a greater factor in determining risk than the leverage ratio.

How Leverage Works in CFD Trading

PrimeXBT leverage provides traders with a capital injection, as it decreases the margin requirement to open and hold positions. For example, 1:100 leverage, the maximum for cryptocurrency traders, means that for each $1, traders can control a $100 position. Therefore, traders can achieve greater diversification with smaller portfolios or increase their earnings potential by borrowing capital from PrimeXBT.

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

Here is an example of buying 0.10 BTC without PrimeXBT leverage:

• The BTC/USD trades at 78,900
• Without PrimeXBT leverage, a trader must pay $7,890 to open the position

Here is an example of buying 0.01 BTC with PrimeXBT leverage:

• The BTC/USD trades at 78,900
• With PrimeXBT leverage, a trader must pay $39.45 to open the position

Therefore:

• A trader can purchase more with the same amount or the same amount with a smaller portfolio

Regulation and CFD Leverage Limits at PrimeXBT

The PrimeXBT account types section list the maximum PrimeXBT leverage, applying to Forex, while other assets have lower maximum leverage.

Here are the regulators and Forex leverage limits at PrimeXBT:

1. Regulator: FSCA (Financial Sector Conduct Authority, South Africa)

• Compensation Scheme: No
• Maximum Forex Leverage: 1:1000

2. Regulator: FSA (Financial Services Authority, Seychelles)

• Compensation Scheme: No
• Maximum Forex Leverage: 1:1000

3. Regulator: FSC (Financial Services Commission, Mauritius)

• Compensation Scheme: No
• Maximum Forex Leverage: 1:1000

All retail traders receive the following:

• Segregated client deposits from corporate funds
• Negative balance protection
• Forced liquidation below 9% margin level

PrimeXBT Leverage by Asset Type

My PrimeXBT broker review, found that PrimeXBT ranks among the most competitive brokers for leveraged traders, especially for cryptocurrency CFDs. The trading platform lists maximum leverage under contract specifications. Therefore, traders can use the PrimeXBT demo account to explore using various PrimeXBT leverage ratio options.

Please note:

• No PrimeXBT Islamic account is available
• PrimeXBT has reasonable swap rates for leveraged overnight positions, including positive ones

Can You Set Leverage Manually at PrimeXBT?

PrimeXBT allows traders to set their leverage manually, but it cannot exceed the maximum PrimeXBT leverage determined by the asset type.

How Do You Change Leverage at PrimeXBT?

Traders can change their PrimeXBT leverage from the web-based trading platform.

Here is how to change your PrimeXBT leverage:

• Select your preferred asset.
• Choose the pencil icon next to “Margin Type.”
• Select “Isolated” as the margin type
• Adjust the leverage to your desired level.

Please note:

• Traders may adjust the leverage on open positions
• Please note the increase in margin requirement if you decrease your PrimeXBT leverage, and ensure you have sufficient capital

PrimeXBT Leverage – Pros and Cons

Traders should consider the pros and cons of PrimeXBT leverage, as they will impact margin requirements and influence the PrimeXBT withdrawal.

The Pros of PrimeXBT Leverage

• Negative balance protection
• Customizable leverage settings
• The ability to adjust leverage on open positions
• Automatic stop-out levels at 9% margin level
• Low swap rates on leveraged overnight positions
• Competitive maximum leverage conditions

The Cons of PrimeXBT Leverage

• Lack of clarity concerning margin call levels

Bottom Line

PrimeXBT offers ultra-competitive leverage conditions, and I rank it among the best choices for active cryptocurrency CFD traders, who can trade with a maximum leverage of 1:200. Forex traders get up to 1:1000. Negative balance protection ensures traders cannot lose more than their deposit.

FAQs

What is the maximum lot size in PrimeXBT?

PrimeXBT does not list a maximum lot size per transaction, but traders should be able to place trades between 10 and 100 lots, depending on the asset, based on PrimeXBT’s liquidity providers.

What is the leverage on PrimeXBT?

At Prime XBT, the maximum retail Forex leverage is 1:1000, while cryptocurrency traders can use 1:200, commodities max out at 1:500, and index traders receive 1:100. Not all assets within a sector qualify for maximum leverage. PrimeXBT has negative balance protection to ensure traders cannot lose more than their deposit. Traders should always use appropriate risk management with leveraged trading to avoid magnified trading losses.

By 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.