Trading Margin
View the calculation formula for margin on specific products and lot sizes, along with the notification and liquidation levels.
What are your margins for the United Kingdom retail division?
The trading leverage is set to 30:1 for major currency pairs; 20:1 for non-major currency pairs, gold and major indices; 10:1 for silver and other commodities.
The following is a set of examples that provide an explanation on the margin based on different base currency pairs.
USD Base Currency
Lot Size / Leverage = Margin
10,000 / 30 = 333 USD (30:1 leverage)
10,000 / 20 = 500 USD (20:1 leverage)
USD Non-Base Currency
(Current Market Quote ×Lot Size) / Leverage = Margin
(1.12262 x 10,000) / 30 = 374.20 USD (30:1 leverage)
(1.12262 x 10,000) / 20 = 561.31 USD (20:1 leverage)
Non-USD Cross Currency
Current Market Quote × Lot Size) = Currency Quote
The sample below is based on a market quote of 134.745 for EURJPY.
We also obtained the market quote for USDJPY (119.721) and EURUSD (1.13548).
134.745 x 10,000 = 1,347,450 JPY<
JPY Currency Quote / USDJPY market quote = USD Currency Quote
1,347,450 / 119.721 = 11,254.91 USD
EURUSD market quote x Lot Size = 2nd USD Currency Quote
1.13548 x 10,000 = 11,354.80 USD
Largest USD Currency Quote / Leverage = Margin
11,354.80 / 30 = 378.49 USD (30:1 leverage)
11,354.80 / 20 = 567.74 USD (20:1 leverage)
What are your margins for the United Kingdom professional division?
The trading leverage is set to 100:1.
The following is a set of examples that provide an explanation on the margin based on different base currency pairs.
USD Base Currency
Lot Size / Leverage = Margin
10,000 / 100 = 100 USD (100:1 leverage)
USD Non-Base Currency
(Current Market Quote ×Lot Size) / Leverage = Margin
(1.12262 x 10,000) / 100 = 112.26 USD (100:1 leverage)
Non-USD Cross Currency
Current Market Quote × Lot Size) = Currency Quote
The sample below is based on a market quote of 134.745 for EURJPY.
We also obtained the market quote for USDJPY (119.721) and EURUSD (1.13548).
134.745 x 10,000 = 1,347,450 JPY
JPY Currency Quote / USDJPY market quote = USD Currency Quote
1,347,450 / 119.721 = 11,254.91 USD
EURUSD market quote x Lot Size = 2nd USD Currency Quote
1.13548 x 10,000 = 11,354.80 USD
Largest USD Currency Quote / Leverage = Margin
11,354.80 / 100 = 113.54 USD (100:1 leverage)
What is your notification level on the MT4 platform?
If you are on our Cayman Islands division or a professional client on our United Kingdom division, if margin reaches 120%, the software will show a red banner indication which provides a visual notification. If you are a retail client on our United Kingdom division, if margin reaches 100%, the software will show the notification.
What is your liquidation level on the MT4 platform?
If you are on our Cayman Islands division or a professional client on our United Kingdom division, if margin reaches 100%, the software will begin to liquidate the position that has the highest losing amount. If you are a retail client on our United Kingdom division, if margin reaches 50%, the software will begin to liquidate the position that has the highest losing amount.