How Is Tiered Leverage Calculated on a 1:5000 Account? (Example)

Tiered leverage rules for a 1:5000 account (position size = total open lots across all orders):

• 0 – 0.5 lots: entire position at 1:5000
• 0.5 – 2 lots: portion above 0.5 lots at 1:1000
• 2 – 5 lots: portion above 2 lots at 1:500
• 5 – 10 lots: portion above 5 lots at 1:200
• 10 – 20 lots: portion above 10 lots at 1:100
• 20+ lots: portion above 20 lots at 1:50

Example: Holding 3 lots EURUSD → margin = (0.5 lots @ 1:5000) + (1.5 lots @ 1:1000) + (1.0 lot @ 1:500), summed together.