Investors can expand their positions by using leverage. For example, if an investor deposits US$ 1,000 and uses 100:1 leverage, the investor can hold a product with the nominal value up to US$ 100K. Since the client's actual assets are only $1,000, to avoid negative equity, when the equity is less than 50% of the used margin, the trading system will execute forced liquidation. Using high leverage means higher risk exposure, which magnify both potential profits and losses.

Compared with fixed leverage, flexible leverage is floating. NCE implements the rules of maximum flexibility and leverage to satisfy professional investors who want to use higher leverage under certain conditions. The maximum leverage is based on the client's current equity which is checked every 30 seconds-one minute.

NCE recommends that investors who need high leverage can withdraw or transfer a certain percentage of funds to another account with the same name once leverage reduction is triggered.

New traders are easy to mistakenly believe that leverage will affect the results of trading profit / loss. Actually, open interest not the leverage matters. For two accounts with 1000:1 and 1:1 leverage respectively, trading the same product with same lots will end up with the same profit / loss.