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. Keep in mind that trading on margin can both positively and negatively affect your trading experience as both profits and losses can be dramatically amplified. You can keep track of your Used and Usable margin in the Accounts Window of the Trading Station.
SMART MARGIN WATCHER: MANAGE YOUR TRADING ACCOUNT SMARTER
FXCM is committed to increasing customer profitability. We know that our traders are right more than 50% of the time, however many traders lose more money on losing trades than they make on winning trades.2 FXCM believes that the Smart Margin Watcher feature, one of the newest Trading Station features, can help you stay ahead of Margin Calls and ultimately put you in a better position to trade.
The Smart Margin Watcher was designed to monitor your positions and ALERTS you if the market goes against your trades and your account equity drops below your margin requirements.
Essentially the Smart Margin Watcher can give you a buffer between your Margin Warning and liquidation, allowing you to either deposit more funds or close out of positions to potentially avoid a margin call. To disable FXCM's Smart Margin feature on your account, log into MyFXCM.com and select "Change-Margin Request". Please note that the Smart Margin Watcher is only available on FXCM LLC Trading Station accounts at this time.
What are FXCM Margin Requirements?
By default FXCM LLC offers a maximum of approximately 50:11 leverage (or 2% margin)* on its forex trading accounts. Margin requirements (per 1K lot) at FXCM are updated once per month. See FX MMR per 1k Lot.
When are margin requirements updated?
Margin requirements are updated each month on the last Friday. Scheduled updates are on the following dates:
- June 26, 2015
- July 31, 2015
- August 28, 2015
- September 25, 2015
- October 30, 2015
- November 27, 2015
* Actual margin requirements may be higher.
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 with any level of leverage may not be suitable for all investors.