Leverage and Margin

Leverage and Margin Requirements

Leverage refers to using a smaller capital to open a position of a larger value in the market. Understanding how leverage works and your necessary margin requirements, allows you to apply good risk management. This will help traders to avoid any unnecessary margin calls resulting from the closing of a position due to not enough margin in your account.

Currencies:

Leverage Instruments
1:500
Major, Minor and Exotic FX pairs

Example:

Required Margin = Number of lots x Contract size x Market Price / Leverage
10 lots x 100,000 x 1.0557/500 = $2,111.40

Metals:

Leverage Instruments
1:200
Gold
1:100
Silver
1:50
Platinum, Palladium

Example:

Required Margin = Volume * Contract Size * Open Price / Leverage
1 lot XAUUSD: 1 x 100 x 1,260 / 200 = $630

Energy:

Leverage Instruments
1:100
WTI, Brent, Natural Gas

Major Indices:

Leverage Instruments
1:100
US500, DE40, AUS200, F40, JP225, UK100, US100, US30

Minor Indices:

Leverage Instruments
1:50
ES35, HONGKONG50

Commodities:

Leverage Instruments
1:50
COPPER, COCOA, COFFEE, COTTON, SUGAR, CORN, SOYBEAN, WHEAT

Shares:

Leverage Instruments
1:50
1000+ shares from the US, the UK, Germany, France, Hong Kong and other major Markets

Crypto:

Leverage Instruments
1:20
BTCUSD, ZECUSD, XMRUSD, TRXUSD, OMGUSD, NEOUSD, EOSUSD, XRPUSD, LTCUSD, ETHUSD, BCHUSD

For Stocks/Equity CFDs/Indices/crypto/Energy

Example:

Required Margin = Volume x Contract Size x Open Price x Margin % (or /leverage)
10 lots US Oil: 10 x 1000 x 85 x 0.1 = $8,500

Margin Call

Although each trader is solely responsible for monitoring their trading account activity and risk management, we apply a margin call policy to secure that your maximum possible risk does not exceed your account equity.

As soon as your account equity drops below 80% of the margin needed to maintain your open positions, we will attempt to notify you with a margin call warning you that you do not have sufficient equity to support open positions.

Stop-Out Level

The stop-out level refers to the equity level at which your open positions get automatically closed. The stop-out level in a retail client’s account is reached when the equity in the trading account is equal or falls below 20% of the required margin.

快速訪問

快速访问