Condition of FXTM's Leverage and Margin Requirement

Leverage and Margin of FXTM

The foreign exchange margin required for FXTM can be found on this page.

When trading forex, you must maintain a certain level of money (margin) in your account.

If you calculate the margin rate to be maintained in advance, you can manage risk more easily, and avoid unnecessary counter trades, that is, unnecessary margin calls caused by an insufficient margin in your account.

NOK and SEK currency pairs are leveraged up to 1:50 on nominal trading amounts up to 5,000,000 / 4,000,000 / 3,300,000 / 1,575,000,000 USD/ EUR/ GBP/ NGN.

When the nominal transaction amount is above 5,000,000 / 4,000,000 / 3,300,000 / 1,575,000,000 USD / EUR/ GBP/ NGN, the leverage of the NOK and SEK currency pairs is fixed at 1:25.

The HKD currency pair is leveraged up to 1:25 for notional trading amounts up to 500,000 / 400,000 / 330,000 / 157,500,000 USD/ EUR/ GBP/ NGN.

When the nominal transaction amount is above 500,000 / 400,000 / 330,000 / 1,575,000,000 USD / EUR/ GBP/ NGN, the leverage of the HKD currency pair is fixed at 1:10.

TRY, CZK and ZAR currency pairs are fixed leverage with TRY currency pair 1:3, CZK currency pair 1:5 and ZAR currency pair 1:25.

Forex indices on ECN MT4 accounts require the same margin as FX Miners of the same account type.

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Examples of Leverage on FXTM

Step 1

Let’s say you buy 1 lot of GBPUSD 1.4584 into your USD account and your first Forex position is created.

Nominal value: 1 100 * 000 * 1.4584 = 145 840 USD is the savor days 145 840 USD is the does not exceed the nominal value of 1,200,000 USD Leverage 1: 1000 is available at.

Margin: 145 840 / 1000 = 145.84 USD

Step 2

Let’s say you buy 5 lots of EURUSD 1.3175, resulting in a second Forex position.

Nominal value is: 5 * 100 000 * 1.3175 = 658 750 USD

The combined nominal value of Position 1 and Position 2 is:

145 840 ((Position 1) + 658 750 (Position 2) = 804 590.00 USD.

In this case, the sum of the nominal values ​​of the exposed positions is greater than 200 000 USD but less than 2 000 000 USD.

Thus, the 200 000 USD will provide a leverage of 1:1000 and the remaining 604 590 USD will provide a leverage of 1:500.

Margin: 200 000 / 1000 + 604 590 / 500 = 1 409.18 USD.

Step 3

Assume that you buy 10 lots of GBPUSD 1.4590 and a third position occurs.

Nominal value is: 10 * 100,000 * 1.4590 = 1 459 000 USD

The total notional value of the three positions is:

145 840 (Position 1) + 658 750 (Position 2) + 1 459 000 (Position 3) = 2 263 590 USD.

This time the position sum is more than 2 000 000 USD notional but less than 6 000 000 USD.

So, for 200 000 USD, you get a leverage of 1:1000, on your 1 800 000 USD you get a leverage of 1:500, and on the remaining amount you get a leverage of 1:200.

Margin: 200 000 / 1000 + 1 800 000 / 500 + 263 590 / 200 = 5 117.95 USD.

Step 4

Assume that you buy 30 lots of EURUSD 1.3164 and a fourth position occurs.

Nominal value is: 30 * 100 000 * 1.3164 = 3 949 200.00 USD

The total notional value of the four positions is:

145 840 (Position 1) + 658 750 (Position 2) + 1 459 000 (Position 3) + 3 949 200 (Position 4) = 6 212 790.00 USD.

Now the sum of the nominal value of the exposed positions is more than 6 000 000 USD but less than 8 000 000 USD.

So, 200 000 USD is given a leverage of 1:1000, 1 800 000 USD is given a leverage of 1:500, 4 000 000 USD is given a leverage of 1:200, and the remaining amount is given a leverage of 1:100. It’s possible.

Margin: 200 000 / 1000 + 1 800 000 / 500 + 4 000 000 / 200 + 212 790 / 100 = 25 927.90 USD

Step 5

Assume that you buy 20 lots of EURUSD 1.3188 and a fifth position occurs.

The nominal value is: 20 * 100 000 * 1.3188 = 2 637 600.00 USD.

The sum of the nominal values ​​of all five positions is:

145 840 (Position 1) + 658 750 (Position 2) + 1 459 000 (Position 3) + 3 949 200 (Position 4) + 2 637 600 (Position 5) = 8 850 USD 390.00 .

Thus, 200 000 USD will provide a leverage of 1:1000, 200 000 USD will provide a leverage of 1:500, 4 000 000 USD will provide a leverage of 1:200, and 2 000 000 USD will provide a leverage of 1:100. A leverage of 1:25 is provided on the remaining amount offered.

Margin: 200 000 / 1000 + 1 800 000 / 500 + 4 000 000 / 200 + 2 000 000 / 100 + 850 390 / 25 = 77 815.60 USD

Step 6

Let’s say you close your third position (buy 10 lots of GBPUSD 1.3175).

Nominal value: 1 459 000 USD

The sum of the nominal values ​​of all four positions ( accounting for the third position being liquidated) is:

145 840 (Position 1) + 658 750 (Position 2) + 3 949 200 (Position 4) + 2 637 600 (Position 5) = 7 391 $390.00.

When position 3 is liquidated, the total notional value decreases, reducing the margin you need to maintain. Minutes over 8 000 000 USD are excluded first and no 1:25 leverage applied to them.

Margin: 200 000 / 1000 + 1 800 000 / 500 + 4 000 000 / 200 + 1 391 390 / 100 = 37 713.90 USD

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