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, 30:1 leverage on a major forex pair like GBP/USD allows you to trade with €10,000 in the market by setting aside only around €334 as a security deposit.
FXCM offers different leverage for different tradeable instruments.
- 30:1 leverage restriction for major currency pairs
- 20:1 for non-major currency pairs, gold and major indices
- 10:1 for commodities other than gold and non-major equity indices
- 5:1 for individual equities and other reference values
- 2:1 for cryptocurrencies
To view up to date Margin Requirement please click here.
Further to the above leverage requirements, FXCM has established a negative balance protection policy which in the event that a negative balance occurs in the clients' trading account due to stop out and/ or extremely volatile market conditions, then a relevant adjustment to cover the full negative amount will be made. This means that retail clients will never lose more than the total funds invested in their trading account. Professional clients are not entitled to negative balance protection. In addition, considering the level of risk and complex nature of trading CFDs, FXCM does not offer any incentives to encourage retail clients to trade.