Leverage and Margin

Leverage and Margin

 

On this page, you will find the margin requirements for Forex Decent FXDT. 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 Micro, Classic, ECN Trading Accounts

 

FX MAJORS | FX MINORS | FX EXOTICS | SPOT METALS | BTCUSD | ETHUSD | LTCUSD

Notional value (USD) Notional value (EUR) Notional value (GBP) Notional Value (NGN) Leverage Offered * Floating Margin, %
0 - 200 000 0 - 180 000 0 - 150 000 0 - 63 000 000 1:1000 0.1
200 000 - 2 000 000 180 000 - 1 800 000 150 000 - 1 500 000 63 000 000 - 630 000 000 1:500 0.2
2 000 000 - 6 000 000 1 800 000 - 5 300 000 1 500 000 - 4 600 000 630 000 000 - 1 890 000 000 1:200 0.5
6 000 000 - 8 000 000 5 300 000 - 7 000 000 4 600 000 - 6 100 000 1 890 000 000 - 2 520 000 000 1:100 1
More than 8 000 000 More than 7 000 000 More than 6 100 000 More than 2 520 000 000 1:25 4

 

On FXDT ECN Pro Trading Accounts

 

FX MAJORS | FX MINORS | FX EXOTICS | SPOT METALS
 
Notional value (USD) Notional value (EUR) Notional value (GBP) Notional value (NGN) Leverage Offered * Floating Margin, %
0 - 5 000 000 0 - 4 000 000 0 - 3 300 000 0 - 1 575 000 000 1:200 0.5
5 000 000 - 20 000 000 4 000 000 - 15 500 000 3 300 000 - 13 300 000 1 575 000 000 - 6 300 000 000 1:100 1
20 000 000 - 25 000 000 15 500 000 - 19 500 000 13 300 000 - 16 700 000 6 300 000 000 - 7 875 000 000 1:50 2
More than 25 000 000 More than 19 500 000 More than 16 700 000 More than 7 875 000 000 1:25 4

 

On FXDT ECN VIP Trading Accounts

 

FX MAJORS | FX MINORS | FX EXOTICS | SPOT METALS
 
Notional value (USD) Notional value (EUR) Notional value (GBP) Notional value (NGN) Leverage Offered * Floating Margin, %
0 - 6 000 000 0 - 5 300 000 0 - 4 600 000 0 - 1 890 000 000 1:200 0.5
6 000 000 - 8 000 000 5 300 000 - 7 000 000 4 600 000 - 6 100 000 1 890 000 000 - 2520 000 000 1:100 1
More than 8 000 000 More than 7 000 000 More than 6 100 000 More than 2 520 000 000 1:25 4

 

Please Note:

*If positions are opened, closed, or modified on forex currency pairs on a Standard. MT4 or Micro. MT4 account in the hour before the trading session ends on Friday, the leverage will be fixed at 1:100. Before the beginning of the next trading session, the leverage will be reset based on the total volume of open positions on the account.

*Leverage is offered based on your knowledge and experience. The Leverage / Margin requirements may be subject to change as a result of applicable regulations in your country of residence. For residents of Poland, the maximum leverage is 1:100.

*NOK and SEK pairs are provided with a maximum leverage of 1:50 for volumes with a notional value of up to 5,000,000 / 4,000,000 / 3,300,000 / 1,575,000,000 USD/ EUR/ GBP/ NGN. For volumes above 5,000,000 / 4,000,000 / 3,300,000 / 1,575,000,000 USD / EUR/ GBP/ NGN, the leverage for NOK and SEK pairs is fixed at 1:25.

*HKD pairs are provided with a maximum leverage of 1:25 for volumes with a notional value of up to 500,000 / 400,000 / 330,000 / 157,500,000 USD/EUR/GBP / NGN. For volumes above 500,000 / 400,000 / 330,000 / 157,500,000 USD/EUR/GBP NGN, the leverage for HKD pairs is fixed at 1:10.

*Please note that TRY, CZK and ZAR pairs have a fixed leverage of 1:25.

 

Please note that the leverage offered for EURCNH and USDCNH currency pairs is outlined in the table below:

 

Notional value (USD) Notional value (EUR) Notional value (GBP) Notional value (NGN) Leverage Offered * Floating Margin, %
0 - 2 000 000 0 - 1 600 000 0 - 1 300 000 0 - 630 000 000 1:50 2
2 000 000 - 4 000 000 1 600 000 - 3 200 000 1 300 000 - 2 700 000 630 000 000 - 1 260 000 000 1:25 4
More than 4 000 000 More than 3 200 000 More than 2 700 000 More than 1 260 000 000 1:10 10

 

Trading leveraged products has the potential to increase losses as well as profits. Click here to read more and please trade carefully.

 

Calculating Forex Margin Requirements with Flexible Leverage

 

 

Step 1

 

Assume you open Position #1 Buy 1 lots GBPUSD 1.4584 for a USD Denominated Account.

The notional value is: 1 * 100 000 * 1.4584 = 145 840 USD. Since the notional value of 145 840 USD is not above 200 000 USD, the Leverage offered is 1:1000.

Margin is: 145 840 / 1000 = 145.84 USD.

 

Step 2

 

You open position # 2 Buy 5 lots EURUSD 1.3175.

The notional value is: 5 * 100 000 * 1.3175 = 658 750 USD.

The aggregate notional value of Position #1 and Position #2 is:

145 840 (for position # 1) + 658 750 (for position # 2) = 804 590.00 USD.

In this case, the aggregate notional value of open positions is above 200 000 USD, but under 2 000 000 USD.

Thus, a leverage of 1:1000 is provided for the first 200 000 USD, and a leverage of 1:500 for the remaining 604 590 USD.

Margin is: 200 000 / 1000 + 604 590 / 500 = 1 409.18 USD.

 

Step 3

 

Assume you open Position #3 Buy 10 lots GBPUSD 1.4590.

The notional value is: 10 * 100 000 * 1.4590 = 1 459 000 USD.

The aggregate notional value of all three positions is:

145 840 (for position # 1) + 658 750 (for position # 2) + 1 459 000 (for position # 3) = 2 263 590 USD.

Now the aggregate notional value of open positions is above 2 000 000 USD, but under 6 000 000 USD.

Thus, a leverage of 1:1000 is provided for the first 200 000 USD, a leverage of 1:500 for the next 1 800 000 USD, a leverage 1:200 for the remaining amount.

Margin is: 200 000 / 1000 + 1 800 000 / 500 + 263 590 / 200 = 5 117.95 USD.

 

Step 4

 

Assume you open Position #4 Buy 30 lots EURUSD 1.3164.

The notional value is: 30 * 100 000 * 1.3164 = 3 949 200.00 USD.

The aggregate notional value of all four positions is:

145 840 (for position # 1) + 658 750 (for position # 2) + 1 459 000 (for position # 3) + 3 949 200 (for position # 4) = 6 212 790.00 USD.

Now the aggregate notional value of open positions is above 6 000 000 USD, but less than 8 000 000 USD.

Thus, a leverage of 1:1000 is provided for the first 200 000 USD, a leverage of 1:500 for the next 1 800 000 USD, leverage 1:200 for the next 4 000 000 and leverage 1:100 for the remaining amount.

Margin is: 200 000 / 1000 + 1 800 000 / 500 + 4 000 000 / 200 + 212 790 / 100 = 25 927.90 USD

 

Step 5

 

Assume you open Position #5 Buy 20 lots EURUSD 1.3188

The notional value is: 20 * 100 000 * 1.3188 = 2 637 600.00 USD.

The aggregate notional value of all five positions is:

145 840 (for position # 1) + 658 750 (for position # 2) + 1 459 000 (for position # 3) + 3 949 200 (for position # 4) + 2 637 600 (for position # 5) = 8 850 390.00 USD.

Thus, a leverage of 1:1000 is provided for the first 200 000 USD, a leverage of 1:500 for the next 1 800 000 USD, a leverage 1:200 for the next 4 000 000, a leverage 1:100 for the next 2 000 000 and a leverage of 1:25 for the remaining amount.

Margin is: 200 000 / 1000 + 1 800 000 / 500 + 4 000 000 / 200 + 2 000 000 / 100 + 850 390 / 25 = 77 815.60 USD

 

Step 6

 

Let's suppose you close position #3 (Buy 10 lots GBPUSD 1.4590)

The notional value is: 1 459 000 USD.

The aggregate notional value of all four positions is (taking into account the third position having been closed):

145 840 (for position # 1) + 658 750 (for position # 2) + 3 949 200 (for position # 4) + 2 637 600 (for position # 5) = 7 391 390.00 USD.

When Position #3 was closed, the total notional value also decreases which leads to a decrease in the margin requirements. The part exceeding 8 000 000 USD is removed first and with it the 1:25 leverage.

Margin is: 200 000 / 1000 + 1 800 000 / 500 + 4 000 000 / 200 + 1 391 390 / 100 = 37 713.90 USD

 

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