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Margin & Leverage

FXTRADING.com offers clients the flexibility to trade with leverage up to 500:1.

Flexible

leverage up to

500:1

Dynamic leverage

applied to all

clients

Negative balance

protection

Live risk exposure

management

Margin call

level is as

low as 100%

Trade with Flexible Leverage at FXTRADING.com

Trade a variety of CFDs with our dynamic leverage. Leverage up to 500:1 is available with FXTRADING.com.

What is Margin and How is it Calculated?

Similar to collateral, the margin is the amount of money required to be deposited into a trading account to open a trade, which is usually a fraction of the underlying market cost.

Long example: Buying GBP/USD

A trader buys 1 contract of GBP/USD (one contracts equals 100,000 GBP) at $1.2650

  • (# contracts x contract size) x (exit price – entry)
  • (1 x 100,000) x (1.2800 – 1.2650) = $1,500
  • (# contracts x contract) x (exit price – entry)
  • (1 x 100,000) x ($1.2600 – $1.2650)

  • (# contracts x contract size x price) / leverage

  • (1 x 100,000 x 1.2650) / 400

Short example: Selling USD/JPY

A trader sells 5 contracts of USD/JPY (one contracts equals 100,000 USD) at ¥107.25

  • (# contracts x contract size) x (entry – exit price)
  • (5 x 100,000) x (106.50 – 107.25) = ¥375k ($3,500)
  • (# contracts x contract) x (entry – exit price)
  • (5 x 100,000) x ($1.2600 – $1.2650) = -¥225k ($2,100)

  • (# contracts x contract size x price) / leverage
  • (1 x 100,000 x 107.25) / 400 = ¥134.01k ($316.25)

What is Leverage and How is it Calculated?

Leverage results from using borrowed capital as the source of funds, allowing traders to gain access to larger sums of capital. However, the use of leverage is a double-edged sword, heightening profits and losses at the same time.

A $5000 Forex Trading Account with 100:1 Leverage

If $2,000 is used to trade forex on margin with 100:1 leverage, the trader will have an exposure of $200,000 of base currency. 

To calculate exposure: 

Margin × leverage = exposure

$2,000 margin × 100 leverage = $200,000 exposure of base currency

Margin Call

FXTRADING.com offers clients with a margin call level at 100%. This means that when a client’s margin level (equity/margin) falls to 100%, the client will receive an email to notify them that they do not have sufficient funds to support their open positions.

Stop-out Level

FXTRADING.com’s stop-out level for clients is 50%. This means that when the margin level falls to 50% (equity/margin), open positions would be automatically closed until the margin level goes above 100%.

 

Trades will be closed in order of largest to smallest, until the margin level (maintenance margin) is at 100% or greater.

Dynamic Leverage Function

The dynamic leverage function will be operational on all trades opened on forex and gold CFDs.

Leverage Levels at FXTRADING.com

Starting from 22nd of March 2021, the dynamic leverage function has been utilized at FXTRADING.com for both FX and gold products. The default leverage levels and the corresponding account balances can be seen in the table below:

FX and Gold Dynamic Leverage Function

Account Balance Tiers

$0-$19,999.99

$20,000-$49,999.99

$50,000-$99,999.99

$100,000 and above

Leverage

500:1

300:1

200:1

100:1

With FX and Gold products, the dynamic leverage function works as follows:

With other asset classes, leverage levels are fixed at

Other Asset Classes Leverage Levels at FXTRADING.com

Asset Classes

Silver and Energies

Share Indices

Commodities

Cryptocurrencies

Leverage

100:1

100:1

50:1

5:1

* Please note that FXTRADING.com reserves the right to adjust leverage at any time.

* Please take into consideration the impact of leverage levels on your trading.

View FXTRADING.com Margin & Leverage

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