Leverage and Margin

TRADING ON LEVERAGE

You can trade Forex and CFDs on leverage. This can allow you to take advantage of even the smallest moves in the market. When you trade with FXCM, your trades are executed using borrowed money. For example, 100:1 leverage allows you to trade with $10,000 in the market by setting aside only $100 as a security deposit. Remember, higher leverage can amplify your losses.

All new accounts are defaulted to up to 400:1 leverage on FX and up to 200:1 on CFDs. Accounts that are funded in excess of 50,000 CCY will be moved to a leverage of up to 100:1 on FX and 200:1 on CFD's. The leverage on your account will then be adjusted based on the equity in your account. FXCM reserves the final right, in its sole discretion, to change your leverage settings.

Equity1 Up to $50,000 $50,000 +
FX Leverage up to 400:1 up to 100:1
CFD Leverage up to 200:1 up to 200:1

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Did you know? If you are trading FX on 100:1 leverage and your account equity is below 50,000 CCY, you can request a leverage increase. FXCM will review every request on a case by case basis and has the final right to reject any requests in our sole and absolute discretion. Learn More

What is Margin?

Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. The amount of margin that you are required to put up for each currency pair varies by the leverage profiles listed above.

Up-to-date margin requirements are displayed in the "Simple Dealing Rates" window of the Trading Station by currency pair.

Simple Dealing Rates

Do Margin requirements change?

Margin requirements can periodically change to account for changes in market volatility and currency exchange rates. For example, the margin requirement (MMR) for a specific currency pair is calculated as a percentage of the notional value of such pair. As the exchange rates for any specific currency pair fluctuate up or down, the margin requirement for that pair must be adjusted. As an example, if the Euro strengthens against the US dollar, more margin will be required to hold a EUR/USD position in a US dollar denominated account. FXCM does not anticipate more than one update a month, however extreme market movements or event risk may necessitate unscheduled intra-month updates.

View upcoming margin requirements.

Disclosure
1

Equity is your account balance plus the floating profit/loss of your open positions. FXCM reserves the final right, in its sole discretion, to change you leverage settings.

Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange/CFDs with any level of leverage may not be suitable for all investors.

Price arbitrage strategies are prohibited and FXCM determines, at its sole discretion, what encompasses a price arbitrage strategy. Spreads are variable and are subject to delay. Leverage for FX and CFDS varies per instrument. Major currency pairs default to 30:1, non-major currency pairs, gold and major indices default to 20:1, commodities other than gold and non-major equity indices default to 10:1, individual equities and other reference values default to 5:1, and cryptocurrencies default to 2:1.

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