leverage up to
applied to all
Live risk exposure
level is as
low as 100%
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.
A trader buys 1 contract of GBP/USD (one contracts equals 100,000 GBP) at $1.2650
(1 x 100,000) x ($1.2600 – $1.2650)
(# contracts x contract size x price) / leverage
(1 x 100,000 x 1.2650) / 400
A trader sells 5 contracts of USD/JPY (one contracts equals 100,000 USD) at ¥107.25
(5 x 100,000) x ($1.2600 – $1.2650) = -¥225k ($2,100)
(1 x 100,000 x 107.25) / 400 = ¥134.01k ($316.25)
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.
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
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.
The dynamic leverage function will be operational on all trades opened on forex and gold CFDs.
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:
$100,000 and above
Silver and Energies
* 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.