Floating Leverage by Equity for Smarter Risk Management

As a broker, managing risk while maximising opportunities is critical, which is why we’re proud to announce our Floating Leverage plugin has just been upgraded with a new feat. Floating Leverage by Equity, suitable for MT4 as well as MT5, is a powerful solution that allows brokers to fine tune leverage dynamically based on a client's equity, making trading both safer and more flexible. We’ll explain how and why in this article. This feature is another addition to the existing Floating Leverage module in the Your Bourse platform. 

Leverage Management in Forex Trading

Leverage is a critical tool in a broker’s arsenal, allowing clients to take larger positions with a smaller deposit. But while high leverage can drive trading volume, it also carries significant risk for brokers. Large positions opened with high leverage can expose brokers to substantial liabilities, whether through client losses that exceed their equity or profits that impact the broker’s books. To maintain a balance, brokers need smart solutions that let them manage leverage without stifling trading activity. This is where Your Bourse’s Floating Leverage steps in.

How Floating Leverage Adapts to Trading Conditions - Volume vs. Equity

Floating Leverage is designed to automatically adjust the leverage available to traders, based on predefined criteria. Within the Your Bourse platform, brokers can set floating leverage rules in two ways: by trading volume or by client equity. Both methods provide enhanced control over risk exposure while allowing for dynamic adjustments as trading conditions evolve.

Equity-Based Floating Leverage - Enhancing Flexibility

The Equity-Based Floating Leverage feature introduces a new level of flexibility for brokers. With this tool, brokers can adjust leverage based on the client’s account balance  which allows them to control the risks while maintaining favourable trading conditions for the client.  

For instance, a broker may provide a leverage of 1:200 to clients with equity below $1,000, enabling them to trade larger positions. However, as a client’s equity grows—say, to between $1,000 and $5,000—the leverage can automatically reduce to 1:100 , protecting the broker from excessive risk while still allowing the client to grow their open positions.

Key Benefits of Your Bourse’s Floating Leverage by Equity and Volume

Your Bourse’s Floating Leverage by Equity brings multiple benefits. Not only can brokers manage both volume- and equity-based floating leverage rules from a single configuration page, but the automation features provide an unmatched level of control and flexibility.

Key advantages include:

• The ability to modify leverage and margin settings directly from the Cloud Portal 
• Seamless automation of floating leverage rules, all managed from one centralised location
• Import and application of multiple rules, reducing manual intervention and saving time
• Flexibility to apply rules to specific groups or across all clients
• Automatic switching between different floating leverage profiles
• Customisable margin percentages and leverage settings for each trading position

These features position Your Bourse’s Floating Leverage Plugin as an sleek solution for brokers seeking greater control and efficiency in their operations.

Why This Matters for Brokers

For brokers, managing leverage effectively is crucial for both protecting against risk and maintaining profitability. By offering floating leverage, brokers can allow clients to trade confidently while ensuring that leverage is adjusted to suit both the broker’s risk appetite and the trader’s financial standing.

Your Bourse’s Floating Leverage feature, available for both MetaTrader 4 and MetaTrader 5, is a powerful tool that helps brokers stay competitive while managing risk efficiently. Few fintech providers offer this kind of flexibility, giving Your Bourse clients a distinct advantage in the market.

Ending Thoughts

Brokers need elegant and smart technology to manage risk and stay competitive, and our latest tool is only one of the many feats we offer to help you do so. Your Bourse’s Floating Leverage by Equity feature offers a smart solution that helps brokers reduce risk and boost trading activity. 

To learn more about how Your Bourse can enhance your brokerage operations with floating leverage, contact us today for a demo.