Leverage and Margin Requirements
On this page, you will find the leverage and margin requirements for FXTM. When trading, you must maintain a certain level of funds in your account (the necessary margin), also known as a good faith deposit. Calculating and understanding your necessary margin requirements beforehand allows you to apply good risk management and avoid any unnecessary margin calls resulting in the closing of a position due to not enough margin in your account.
Kindly note that leverage offered in Forextime (FXTM) is fixed based on the trading instrument and limited with 1:30 maximum. As with any leveraged product, there is a possibility for both increased losses and profits.
Margin requirements on demo accounts are equivalent to those on corresponding live accounts.
Forex:
| Leverage | Instruments |
|---|---|
| 1:30 | CADCHF, CADJPY, CHFJPY, EURCAD, EURCHF, EURGBP, EURJPY, EURUSD, GBPCAD, GBPCHF, GBPJPY, GBPUSD, USDCAD, USDCHF, USDJPY |
| 1:20 | AUDCAD, AUDCHF, AUDNZD, AUDSGD, CHFSGD, EURDKK, EURNOK, EURNZD, EURSEK, EURSGD, GBPNZD, NZDCAD, NZDCHF, NZDSGD, SGDJPY, USDDKK, USDHKD, USDNOK, USDSEK, AUDJPY, AUDUSD, EURAUD, GBPAUD, NZDJPY, NZDUSD, CHFNOK, CHFPLN, EURHKD, EURPLN, GBPDKK, GBPHUF, GBPNOK, GBPPLN, GBPSEK, GBPSGD, HKDJPY, USDCNH, USDHUF, USDMXN, USDPLN, USDSGD, USDZAR |
*Please note that TRY and CZK pairs have a fixed leverage of 1:3 for TRY and 1:5 for CZK pairs.
Metals:
| Leverage | Instruments |
|---|---|
| 1:20 | XAUEUR, XAUGBP, XAUUSD |
| 1:10 | XAGEUR, XAGUSD |
Indices:
| Ticker | Currency | Leverage |
|---|---|---|
| AUS200, AUS200_m | AUD | 1:5 |
| FCHI40, FCHI40_m | EUR | |
| GER40_m | EUR | |
| Jap225, Jap225_m | JPY | |
| NQ100_m | USD | |
| STOX50, STOX50_m | EUR | |
| UK100, UK100_m | GBP | |
| HSI50, HSI50_m | HKD | 1:10 |
| SPN35, SPN35_m | EUR | |
| Nifty50_m | USD | |
| CHNA50_m | USD | |
| USDInd | USD | 1:30 |
Commodities:
| Ticker | Currency | Leverage |
|---|---|---|
| Brent | USD | 1:10 |
| Crude | USD | |
| NatGas | USD |
Shares:
| Leverage | Instruments |
|---|---|
| 1:5 | CFD US Shares |
Margin requirements for each instrument group
For Standard/Advantage/AdvantagePlus Accounts
Assuming you open one position (buy 1 lot) on a USD denominated account:
Forex (e.g. EURUSD)
Notional Value = Volume * Contract Size = 1 * 100,000 = 100,000 EUR
Required Margin = Notional Value / Leverage = 100,000 / 30 = 3,333.33 EUR * 1.16885 (EURUSD rate) = 3,896.16 USD
Metals (e.g. XAUUSD)
Notional Value = Volume * Contract Size * Open Price = 1 * 100 * 1,265.00 = 126,500 USD
Required Margin = Notional Value / Leverage = 126,500 / 20 = 6,325 USD
Indices (e.g. UK100)
Notional Value = Volume * Contract Size * Open Price = 1 * 10 * 7,480.0 = 74,800 GBP
Required Margin = Notional Value / Leverage = 74,800 / 5 = 14,960 GBP * 1.32281 (GBPUSD rate) = 19,789.24 USD
Commodities (e.g. Crude)
Notional Value = Volume * Contract Size * Open Price = 1 * 1,000 * 72.00 = 72,000 USD
Required Margin = Notional Value / Leverage = 72,000 / 10 = 7,200 USD
Shares (e.g. #AAPL)
Notional Value = Volume * Contract Size * Open Price = 1 * 100 * 185.00 = 18,500 USD
Required Margin = Notional Value / Leverage = 18,500 / 5 = 3,700 USD
