PU Prime Leverage

Leverage is an essential trading tool for profitable traders, but how competitive is the leverage offered by PU Prime? I analyzed PU Prime leverage conditions during my in-depth review of the broker to help traders understand its multi-tier leverage system. Learn about the pros and cons of the PU Prime leverage conditions and how leverage works in CFD trading. Use my conclusions to make an informed decision for your portfolio and trading requirements and learn why I rank PU Prime among the best brokers for leveraged trading.

What Is PU Prime’s Leverage Offering

My PU Prime broker review found that PU Prime offers a default leverage ratio of 1:500 for all of its entities except for the ASIC-regulated one, where the maximum leverage ratio is 1:30. Please note that the choice of leverage settings only applies to Forex and gold, including XAU/USD, XAU/EUR, and XAU/JPY. Traders cannot set their leverage for shares, silver, bonds, ETFs, palladium, platinum, indices, and commodities, which remain fixed.

Forex leverage for the USD/BRL, EUR/TRY, USD/INR, USD/TRY, and USD/THB is fixed at 1:20 and for the USD/ZAR at 1:10.

Here are the six leverage settings at PU Prime:

• 1:100
• 1:200
• 1:300
• 1:400
• 1:500
• 1:1000

Noteworthy:

• Traders who set the maximum PU Prime leverage to 1:1000 will have it reset to 1:500 after their account equity surpasses $20,000

Regulation and CFD Leverage Limits at PU Prime

The PU Prime account types section of the website lists the maximum PU Prime leverage, which applies to Forex and gold. Other assets have lower maximum leverage.

Here are the regulation and leverage limits at PU Prime:

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

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

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

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

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

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

4. Regulator: ASIC (Australian Securities and Investments Commission)

• Compensation Scheme: Yes
• Maximum Forex Leverage: 1:30

All retail traders receive the following:

• Segregated client deposits from corporate funds
• Negative balance protection
• An automated margin call below the 50% margin level
• Forced liquidation below the 20% margin level

PU Prime Leverage by Asset Type

PU Prime ranks among the most competitive brokers for leveraged traders. The trading platform lists maximum leverage under contract specifications, and traders can explore PU Prime leverage in the PU Prime demo.

Please note:

• The PU Prime Islamic account has equal leverage to swap-based accounts
• PU Prime has reasonable swap rates for leveraged overnight positions, including positive ones

How Leverage Works in CFD Trading

PU Prime leverage provides traders with a capital injection, decreasing the margin requirement to open and hold positions. For example, 1:1000 leverage, the maximum PU Prime leverage for Forex and gold traders, means that for each $1, traders can control a $1,000 position. It allows traders to borrow capital from PU Prime to achieve greater diversification with smaller portfolios or increase their earnings potential.

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

Here is an example of taking a 1.0 lot EUR/USD position without PU Prime leverage:

• The EUR/USD trades at 1.1360
• Without PU Prime leverage, a trader must pay $113,600 to open the position

Here is an example of taking a 1.0 lot EUR/USD position with PU Prime leverage:

• The EUR/USD trades at 1.1360
• With PU Prime leverage, a trader must pay $113.60 to open the position

Therefore:

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

Can You Manually Set Leverage at PU Prime?

PU Prime allows traders to set their leverage manually for Forex and gold but they cannot exceed the maximum PU Prime leverage determined by the asset type.

How Do You Change Leverage at PU Prime?

Traders can change the PU Prime leverage from their client portal.

Here is how to change your PU Prime leverage:

• From the “Dashboard,” select “Live Accounts.”
• Click the three-dot menu and select “Change Leverage.”
• Select “Desired Leverage” and pick from the drop-down menu.
• Agree to the terms and conditions and click “Change Leverage.”

Please note:

• Please note the increase in margin requirement if you decrease PU Prime leverage and ensure you have sufficient capital

PU Prime Leverage – Pros and Cons

Traders should consider the pros and cons of PU Prime leverage, as they will impact margin requirements and influence the PU Prime withdrawals.

The Pros of PU Prime Leverage

• Negative balance protection
• Customizable leverage settings
• An automatic margin call at the 50% margin level
• Automatic stop-out levels at the 20% margin level
• Low swap rates on leveraged overnight positions
• Competitive maximum leverage conditions

The Cons of PU Prime Leverage

• None

Bottom Line

PU Prime leverage ranks among the most competitive industry-wide, with a maximum leverage ratio of 1:1000. It features six settings for Forex and gold traders and automatic margin calls and stop-outs. Negative balance protection ensures traders cannot lose more than their deposit.

FAQs

Can I trust PU Prime?

PU Prime has been a well-regulated broker operational since 2015. However, each trader should do their own research to gauge the trustworthiness of a broker before depositing funds.

What is the maximum lot size in PU Prime?

The maximum Forex and gold lot size is 100 lots, while the maximum silver and gold lot size is 20 lots. The contract specifications list maximum lot sizes per asset.

What is the leverage at PU Prime?

The maximum PU Prime leverage is 1:1000 for Forex and gold. Other assets have less leverage.

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.