Margin and Leverage
How does margin work in a long position?
Example 1: Buying GBP/USD
A trader buys 1 contract of GBP/USD (100,000 GBP) at $1.2650.
How does margin work in a short position?
Example 2: Selling USD/JPY
A trader sells 5 contracts of USD/JPY (100,000 USD per contract) at ¥107.25.
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Amplify Trades with Margin & Leverage at FXTRADING.com
- Leverage up to 2000:1
- Live risk exposure management
- Mandatory 50% margin close-out rule
- 100% margin call level
- Negative balance protection
- Australia (AFSL 337985): FXTRADING.com is the trading name of Gleneagle Securities (AUST) Pty Limited which holds Australian Financial Services Licence No. 337985.
- VFSC (Licence No. 40256): Our international operations are licensed by the Vanuatu Financial Services Commission providing global clients access to competitive trading conditions under an established regulatory framework.
Forex CFD
Crypto CFD
Share CFD
Spot Metals CFD
Energy CFD
Indices CFD
New Implementation Note: Beginning May 1, 2026, specific leverage restrictions will apply to Gold and Silver positions during the final hour of daily trading and the final two hours of weekly trading. These adjustments are designed to manage volatility risks before market close and ensure stable margin support. For full details, please refer to our Help Center article.
Equity is calculated as follows: Equity = Account balance + Floating result for open positions. Please note that changes in leverage on your MT4/MT5 trading account may not immediately update margin parameters in your trading terminal. We recommend re-logging into your trading terminal after adjusting leverage for accurate margin parameters.
Please exercise caution, especially when using the highest leverage, as leverage reduction, as outlined in the table above, may increase your margin requirement and could result in liquidation if margin/equity falls below 50%.
* Additionally, leverage for currencies other than USD may vary flexibly according to the day-to-day exchange rate.
The default leverage level starts at 500:1.
Leverage levels will be automatically reduced if the realized account balance rises to a higher account balance tier.
However, leverage levels will not automatically increase if the realized account balance falls to a lower account balance tier.
To increase leverage levels, clients need to apply directly within the FXTRADING.com client portal.
| Asset Classes | Leverage |
|---|---|
| Silver and Energies | 100:1 |
| Indices | 100:1 |
| Commodities | 100:1 |
| BTCUSD and ETHUSD | 100:1 |
| Other Cryptocurrencies | 20:1 |
| Stocks | 10:1 |
* 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.
Frequently Asked Questions
Margin is the amount of capital required to open and maintain a leveraged trading position. It acts as a security deposit that allows you to control a larger position than your account balance would normally permit.
For example, with 100:1 leverage, a $1,000 margin lets you control a $100,000 trade. If the market moves against your position, losses are deducted from your margin.
FXTRADING.com offers several protection measures for leveraged traders:
- Negative Balance Protection: Ensures your losses never exceed your account balance.
- Stop-Out Mechanism: Automatically closes positions if your margin level falls below a critical threshold.
- Tiered Leverage Options: Offers appropriate leverage caps based on your account type and trading instrument to limit risk exposure.
If your margin level falls below the stop-out threshold (usually 50% or lower depending on the account), FXTRADING.com may automatically close your positions to prevent further losses. This is to protect your remaining capital and maintain market integrity.
Yes. Leverage limits on FXTRADING.com vary by asset class and may also adjust dynamically based on your account equity. Details are as follows:
Forex & Gold (Dynamic Leverage – Reduction Only)
Leverage is adjusted automatically as account equity increases:
- Lower equity levels can access higher leverage (up to 2000:1 on FX, 500:1 on Gold)
- As equity grows, leverage is gradually reduced to manage risk exposure
- This applies per trading account and only reduces leverage, never increases it
Other Asset Classes (Fixed Leverage)
- Silver & Energy: up to 100:1
- Share Indices: up to 100:1
- Commodities: up to 100:1
- BTCUSD & ETHUSD: up to 100:1
- Other Cryptocurrencies: up to 20:1
- Stocks: up to 10:1
Leverage availability ultimately depends on the instrument traded, account equity, account type, and applicable regulatory requirements.