Margin & Leverage Levels

Introduction

Margin is the total amount of money required as a “good faith deposit” in order to create a place for your trade. It depends on the account type you hold, trading instrument’s liquidity and volatility, and it is updated periodically for price oscillations. The Financial instrument which allows you to take a position that is worth more on the market than your initial outlay is a leveraged product. Different leveraged products work in different ways, but all amplify the potential profit and loss for a trader. Leveraged products will almost always require you to pay Margin.
margin introduction
Maximum leverage
Equity, USD Maximum forex leverage
Classic
ECN
1:1000
1 to 499
-
1:500
500 to 1999
-
1:400
2000 to 3999
-
1:300
4000 to 7999
-
1:200
8000 to 14999
1 to 9999
1:100
>15000
>10000
Margin Rules
Margin requirements can be different according to the currency pairs and shall be subjected to change depending on the economic conditions. Margin requirements are calculated based on a maximum leverage of 1:100. A complete list of margin requirements by currency pair can be viewed here.
Leverage Rules
Leverage is a byproduct of margin and allows an individual to control larger trade sizes. Traders will use this tool as a way to magnify their returns. It’s imperative to stress, that losses are also magnified when leverage is used. Therefore, it is important to understand that leverage needs to be controlled.
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Risk Warning: FX and CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all your invested capital. Therefore, FX and CFDs may not be suitable for all investors. You should not risk more than you are prepared to lose. Before deciding to trade, please ensure you understand the risks involved and take into account your level of experience. Seek independent advice if necessary.

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