How Does Leveraging Work at Pivex?

At Pivex, traders use leverage to control larger positions in the market using a smaller amount of simulated capital. It’s a common feature in forex and CFD trading that allows you to amplify both potential profits and potential losses.

What is Leverage?

Leverage lets you trade bigger positions than your available margin. For example, with 1:30 leverage, you only need $1,000 of margin to control a $30,000 position. The higher the leverage, the more market exposure you get — but with more risk.

Example:

If you’re trading EUR/USD and want to open a position worth $120,000, with 1:30 leverage, you only need to allocate $4,000 in margin.

Why It Matters at Pivex Funded:

Although Pivex Funded provides simulated capital, your ability to manage leverage responsibly is a key part of your performance assessment. Leverage can help you grow your profits, but it can also lead to fast drawdowns if used carelessly. That’s why smart risk management is essential.

Leverage at Pivex Funded

To balance growth potential with effective risk control, Pivex Funded provides carefully designed leverage options across different asset classes:

• Forex: 1:30

• CFD Indices: 1:5

• CFD Commodities: 1:10

• Crypto: 1:1

• Stocks: 1:1

These levels are meant to support both beginners and experienced traders, encouraging disciplined trading while keeping risk management at the core of every strategy.

Prohibited High-Risk Behavior: Excessive Leverage

The use of excessive leverage, defined as executing trades with an aggressive position size that consumes 70% or more of your permitted drawdown constraints, is classified as high-risk and strictly prohibited.

By utilizing such a substantial portion of your allowed threshold on a concentrated market exposure, you significantly amplify the account’s vulnerability to sudden market fluctuations, leaving a razor-thin margin for error.

Concurrent and Aggregate Exposure

The 70% threshold represents the total concentrated exposure across all positions. For the purpose of evaluating this rule:

• The rule applies to the aggregated nominal value of all simultaneously (concurrently) open positions aggregate nominal value of all positions open simultaneously (concurrently) on the same instrument.

• The total combined exposure across all concurrent positions in a single asset class (e.g., all active XAUUSD trades) must not exceed the 70% risk threshold of your permissible drawdown. Breaking up a single large position into multiple smaller, simultaneous trades does not exempt the consolidated exposure.
  
  Things to Watch For:

• Bigger leverage = bigger risk: A small move against your position can wipe out your margin.
• Drawdown limits apply: At Pivex Funded, daily and overall drawdown rules are based on your account’s starting balance, so overleveraging can lead to violations quickly.
• No margin calls, but risk still matters: Since this is a simulated environment, you won’t get a margin call, but hitting drawdown limits will fail your account.
  

Tips for Responsible Use of Leverage:
• Use smaller lot sizes and avoid risking more than 1–2% per day.
• Always use stop-loss orders to protect your account.
• Don’t open oversized positions just because leverage allows it — your goal is consistency, not lucky wins.

In short, leverage gives you power — but it must be handled with care. At Pivex Funded, we’re looking for traders who use leverage wisely and manage risk with discipline.