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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.

All new accounts are defaulted to 400:1 leverage on FX and 200:1 leverage on CFDs. The leverage on your account will then be adjusted based on the equity in your account.

Trading Experience/Equity1

Equity1 Up to $10,000 $10,000 - $20,000 $20,000 +
FX Leverage 400:1 200:1 100:1
CFD Leverage 200:1 200:1 200:1

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.