On this page, you will find the margin requirements for Forex Time (FXTM). When trading, you must maintain a certain level of funds in your account (the necessary margin), also known as a good faith deposit. Calculating and understanding your necessary margin requirements beforehand allows you to apply good risk management and avoid any unnecessary margin calls resulting in the closing of a position due to not enough margin in your account. Margin requirements on demo accounts are equivalent to those on corresponding live accounts.
On all Trading Accounts
| Notional value (USD) | Notional value (EUR) | Leverage Offered |
|---|---|---|
| 0 — 5,000,000 | 0 — 4,100,000 | 1:500 |
| 5,000,000 — 7,000,000 | 4,100,000 — 5,700,000 | 1:200 |
| 7,000,000 — 10,000,000 | 5,700,000 — 8,100,000 | 1:100 |
| 10,000,000 — 15,000,000 | 8,100,000 — 12,000,000 | 1:33 |
| More than 15,000,000 | More than 12,000,000 | 1:10 |
| Notional value (USD) | Notional value (EUR) | Leverage Offered |
|---|---|---|
| 0 — 3,000,000 | 0 — 2,100,000 | 1:500 |
| 3,000,000 — 5,000,000 | 2,100,000 — 3,600,000 | 1:200 |
| 5,000,000 — 7,000,000 | 3,600,000 — 5,000,000 | 1:100 |
| 7,000,000 — 10,000,000 | 5,000,000 — 7,100,000 | 1:33 |
| More than 10,000,000 | More than 7,100,000 | 1:10 |
| Notional value (USD) | Notional value (EUR) | Leverage Offered |
|---|---|---|
| 0 — 5,000,000 | 0 — 3,600,000 | 1:200 |
| 5,000,000 — 7,000,000 | 3,600,000 — 5,000,000 | 1:100 |
| 7,000,000 — 10,000,000 | 5,000,000 — 7,100,000 | 1:33 |
| More than 10,000,000 | More than 7,100,000 | 1:10 |
| Notional value (USD) | Notional value (EUR) | Leverage Offered |
|---|---|---|
| 0 — 1,500,000 | 0 — 1,200,000 | 0.50% |
| 1,500,000 — 3,000,000 | 1,200,000 — 2,500,000 | 1% |
| 3,000,000 — 6,000,000 | 2,500,000 — 5,000,000 | 2% |
| More than 6,000,000 | More than 5,000,000 | 3% |
| Notional value (USD) | Notional value (EUR) | Leverage Offered |
|---|---|---|
| 0 - 3,000,000 | 0 - 2,500,000 | 1:50 |
| Over 3,000,000 | Over 2,500,000 | 1:25 |
If open positions are modified or positions are opened or closed on forex currency pairs on a standard.mt4 account in the hour before the trading session ends on Friday, the leverage will be fixed at 1:100 for all open and modified positions on forex currency pairs. Before the beginning of the next trading session, the leverage will be reset based on the total volume of open positions on the account.
Calculating Forex Margin Requirements with Floating Leverage
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Step 1
Assume you open Position #1 Buy 20 lots GBPUSD 1.4584.
The notional value is: 20 * 100,000 * 1.4584 = 2,916,800 USD. Since the notional value of 2,916,800 USD is not above 5,000,000 USD, the Leverage offered is 1:500.
Margin is: 2,916,800/500 = 5,833.60 USD.
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Step 2
You open position # 2 Buy 20 lots EURUSD 1.3175.
The notional value is: 20 * 100,000 * 1.3175 = 2,635,000 USD.
The aggregate notional value of Position #1 and Position #2 is:
2,916,800 (for position # 1) + 2,635,000 (for position # 2) = 5,551,800 USD.
In this case, the aggregate notional value of open positions is above 5,000,000 USD, but under 7,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 5,000,000 USD, and a leverage of 1:200 for the remaining 551,800 USD.
Margin is: 5,000,000/500 + 551,800/200 = 12,759 USD.
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Step 3
Assume you open Position #3 Buy 20 lots GBPUSD 1.4590.
The notional value is: 20 * 100,000 * 1.4590 = 2,918,000 USD.
The aggregate notional value of all three positions is:
2,916,800 (for position # 1) + 2,635,000 (for position # 2) + 2,918,000 (for position # 3) = 8,469,800 USD.
Now the aggregate notional value of open positions is above 7,000,000 USD, but under 10,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 5,000,000 USD, a leverage of 1:200 for the next 2,000,000 USD, a leverage 1:100 for the remaining amount.
Margin is: 5,000,000/500 + 2,000,000/200 + 1,469,800/100 = 34,698 USD.
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Step 4
Assume you open Position #4 Buy 25 lots EURUSD 1.3164.
The notional value is: 25 * 100,000 * 1.3164 = 3,291,000 USD.
The aggregate notional value of all four positions is:
2,916,800 (for position # 1) + 2,635,000 (for position # 2) + 2,918,000 (for position # 3) + 3,291,000 (for position # 4) = 11,760,800 USD.
Now the aggregate notional value of open positions is above 10,000,000 USD, but less than 15,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 5,000,000 USD, a leverage of 1:200 is provided for the next 2,000,000 USD, and a leverage of 1:100 for the next 3,000,000 USD and 1:33 for the remaining part.
Margin is: 5,000,000/500 + 2,000,000/200 + 3,000,000/100 + 1,760,800/33 = 103,357.58 USD.
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Step 5
Assume you open Position #5 Buy 30 lots EURUSD 1.3188
The notional value is: 30 * 100,000 * 1.3188 = 3,956,400 USD.
The aggregate notional value of all five positions is:
2,916,800 (for position # 1) + 2,635,000 (for position # 2) + 2,918,000 (for position # 3) + 3,291,000 (for position # 4) + 3,956,400 (for position # 5) = 15,717,200 USD.
Now the aggregate notional value of open positions is above 15,000,000 USD. Thus, a leverage of 1:500 is provided for the first 5,000,000 USD, a leverage of 1:200 is provided for the next 2,000,000 USD, and a leverage of 1:100 for the next 3,000,000 USD, 1:33 for the next 5,000,000 and 1:10 for the remaining part.
Margin is: 5,000,000/500 + 2,000,000/200 + 3,000,000/100 + 5,000,000/33 + 717,200/10 = 273,235.15 USD.
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Step 6
Let's suppose you close position # 2 (Buy 20 lots EURUSD 1.3175)
The notional value is: 2,635,000 USD.
The aggregate notional value of all four positions is (taking into account the second position having been closed):
2,916,800 (for position # 1) + 2,918,000 (for position # 3) + 3 291 000 (for position # 4) + 3,956,400 (for position # 5) = 13,082,200 USD.
When Position #2 was closed, the total notional value also decreases which leads to a decrease in the margin requirements. The part exceeding 15,000,000 USD is removed first and with it the 1:10 leverage.
Margin is: 5,000,000/500 + 2,000,000/200 + 3,000,000/100 + 3,082,200/33 = 143,400 USD.