Condition of Margin Requirement and Leverage on M4Markets Table of Contents

M4Markets’ Margin and leverage

M4Markets offers flexible leverage of up to 1: 1000 on select products and accounts.

It is very important to understand how margin and leverage work, as they are dynamic and reflect the amount of liquidity, the period of the year, holidays, economic news, etc.

Margin and leverage are tools that allow investors to optimize their positions and increase their potential earnings.

Market Available Maximum Leverage
Forex (majors) 1:1000
Forex (minor) 1:1000
Forex (emerging) 1:1000
Raw materials 1:100
Stock Indices 1:100

Forex trades are executed on currency pairs, classified into the following groups:

Major: The most common currency pairs; have the US dollar as the base or counter currency.

Some examples are EUR / USD, GBP / USD, and USD / CAD.

Minors: Currency pairs that do not include the US dollar.

For example: EUR / GBP, EUR / JPY and GBP / CHF.

Emerging: Exotic currency pairs; are made up of a major currency and the currency of an emerging but strong economy.

Among others are EUR / NOK (Norwegian krone), USD / CZK (Czech koruna), and EUR / HUF (forint).

Trade Forex with 1:1000 Leverage on M4Markets

What is leverage?

Leverage is an investment strategy that uses borrowed capital to increase the potential return on investment.

In simple terms, it gives you the ability to control a large amount of money using very little of your own capital, while we cover the rest.

For example, to control a position of $ 1,000,000, we will separate $ 1,000 from your account.

Your leverage, expressed in ratios, is now 1: 1000, where each dollar of yours has a buying power of $ 1000.

You are trading with half a million dollars, but you only invest a thousand dollars of yours, and the return will be over $ 1,000,000.

Leverage can help extend your returns, which is great news if the market is moving in the expected direction.

But that’s the risk of leverage; losses can be extended by the same average as gains.

What is Margin? What is Leverage?

What is the margin?

In the example of leverage, the $ 1,000 deposit is the “margin” you must give in order to use the leverage.

Margin is the amount of capital you need to place an order and hold that position.

It is expressed as a percentage of your net liquidity (current account balance and unrealized gains and losses) and any applicable commission or spread charges.

The margin is not a fee.

The amount is deducted from your account and returned to you when the position is closed.

The total amount to maintain your current open positions is called “used margin”.

The remaining balance in your account available to open new positions is your free margin.

M4Markets MT4 vs MT5 – Which Platform is better for Forex trading?