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Leverage

As a responsible broker, we determine your leverage (expressed as a ratio of transaction size relative to your buying power) according to your level of knowledge and experience in trading, which is evaluated by the Appropriateness Assessment during the Online Registration Process. So, based on your Appropriateness Assessment result, you will be categorized as:

  • Highly Experienced Retail Client
  • Experienced Retail Client,
  • Less Experienced Retail Client or
  • Non-Experienced Retail Client

In accordance with the relevant Laws & Regulations, the default leverage ratio available to our Clients is set at the level of 1:50. If you wish to increase your leverage, we will proceed with your request, as long as the leverage ratio requested by you, is available in your Retail Client Category.

If, based on your Appropriateness Assessment, you have been qualified as a Highly Experienced Retail Client, then you may choose the leverage ratio up to 1:500. For an Experienced Retail Client, the maximum leverage ratio is set on the level 1:300, and while the Less Experienced Retail Client can choose the leverage up to 1:100, the maximum leverage ratio available for the Non-Experienced Retail Client cannot exceed 1:50.

Additionally, please keep in mind that the maximum leverage ratio may also depend on the regulations, which have been implemented in your country of residency. For example, the maximum leverage ratio available for the citizens of Poland is 1:100.

Margin Requirements and Trading Limits

As the transaction size increases, even a minor market movement might have a great impact on your Trading Account, therefore, in addition to the above-mentioned categorization and as an effort to protect your investment capital from excessive leverage, we have implemented a sophisticated Margin Requirement Policy, which you can see below:

Forex Majors Forex Minors Forex Exotics Metals Commodities Shares Indices Cryptocurrencies
MAXIMUM SIZE PER SYMBOL $20,000,000
TIERS NOTIONAL VALUE (USD) LEVERAGE MARGIN
TIER 1 0 – 1,000,000 1:500 0.2 %
TIER 2 > 1,000,000 - 2,000,000 1:200 0.5 %
TIER 3 > 2,000,000 - 5,000,000 1:100 1 %
TIER 4 > 5,000,000 - 10,000,000 1:50 2 %
TIER 5 > 10 000 000 1:20 5 %

MAXIMUM ACCOUNT SIZE

The maximum aggregated notional value per account permitted is 30,000,000 USD.

MARGIN HEDGED

50% Margin Hedged applies for all symbols.

Margin Hedged Example

Assume you open a Buy and a Sell position of 1 lot each on EURUSD, with a leverage of 1:100 for a EUR Denominated Account.

Margin Hedged Requirements = [(2 * 100,000 * 50%)] /100 = 1,000 EUR

How do I calculate Margin Requirements?

To calculate the margin requirements, it is important first to calculate the USD Notional Value. 

Notional Value (USD) Formulas:     

FX Symbols: Lot Size * Contract Size * Base Currency/USD market price

NON-FX Symbols: Lot Size * Contract Size * Price * Symbol Currency/USD market price

TIER 1

Assume you open a Position #1 Buy 7 lots EURUSD 1.2312 for a USD Denominated Account, with a Leverage 1:500.

The notional value is: 7 * 100 000 * 1.2312 = 861,840 USD. Since the notional value of 861,840 USD is not greater than 1,000,000 USD, the Leverage offered is 1:500.

Margin Requirements = 861,840 / 500 = 1,723.68 USD

You open a position # 2 Buy 5 lots EURUSD 1.2350

The notional value is: 5 * 100 000 * 1.2350 = 617,500 USD.

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

861,840 (for position # 1) + 617,500 (for position # 2) = 1,479,340 USD.

In this case, the aggregate notional value of open positions is greater than 1,000,000 USD, but less than 2,000,000 USD.

Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, and a leverage of 1:200 for the remaining 479,340 USD.

Margin Requirements = [(1,000,000 / 500) + (479,340 / 200)] = 4,396.70 USD

Assume you open a Position #3 Buy 20 lots EURUSD 1.2400

The notional value is: 20 * 100 000 * 1.2400 = 2,480,000 USD.

The aggregate notional value of all three positions is:

861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) = 3,959,340 USD.

Now the aggregate notional value of open positions is greater than 2,000,000 USD but less than 5,000,000 USD.

Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD and a leverage of 1:100 for the remaining amount of 1,959,340 USD.

Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (1,959,340 / 100)] = 26,593.40 USD

Assume you open a Position #4 Buy 30 lots EURUSD 1.2500.

The notional value is: 30 * 100 000 * 1.2500 = 3,750,000 USD.

The aggregate notional value of all four positions is:

861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) + 3,750,000 (for position #4) = 7,709,340 USD.

Now the aggregate notional value of open positions is greater than 5,000,000 USD but less than 10,000,000 USD.

Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD, a leverage of 1:100 for the next 3,000,000 USD and a leverage of 1:50 for the remaining amount of 2,709,340 USD.

Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (3,000,000 / 100) + (2,709,340 / 50)] = 91,186.80 USD

Assume you open a Position #5 Buy 30 lots EURUSD 1.2300.

The notional value is: 30 * 100 000 * 1.2500 = 3,690,000 USD.

The aggregate notional value of all five positions is:

861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) + 3,750,000 (for position #4) + 3,690,000 (for position #5) = 11,399,340 USD.

Now the aggregate notional value of open positions is greater than 10,000,000 USD.

Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD, a leverage of 1:100 for the next 3,000,000 USD and a leverage of 1:50 for 5,000,000 USD and a leverage of 1.20 for the remaining amount of 1,399,340 USD.

Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (3,000,000 / 100) + (5,000,000 / 50) + (1,399,340 / 20)] = 161,136.80 USD

TIER 2
TIER 3
TIER 4
TIER 5

Important Notice:

  • 1) If the leverage assigned to your account is smaller than the margin requirements leverage, your assigned leverage will apply.
  • 2) The Company reserves the right to alter the margin requirements, as well as the maximum order size at any given time without any prior notice, as it deems appropriate, due to abnormal market conditions or any other upcoming economic events/news that it believes will have an impact in the stability of financial markets.
  • 3) Shares
    Prior to earnings announcement that may cause volatility in the market and/or on a particular share, the Company reserves the right to significantly increase margin requirements (up to 50%), to protect itself and its Clients from running into negative balance.
  • 4) Cryptocurrencies
    Every Friday at 21:00 (GMT+2) prior to the weekend mode, the margin requirements on Cryptocurrencies will be increased to 50%.

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