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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, 50:1 leverage allows you to trade with £10,000 in the market by setting aside only £200 as a security deposit.

FXCM UK offers different leverage tiers based on trader experience and account equity. Traders that are new to the FX and CFD market are defaulted to 50:1 leverage. Experienced traders may trade with up to 200:1 leverage on FX and CFDs.

Trading Experience/Equity1

Up to £20,000 £20,000 and above

New

Up to 50:1 on FX and CFDs Up to 50:1 on FX and CFDs

Experienced

Up to 200:1 on FX Up to 100:1 on FX
Up to 200:1 on CFDs Up to 200:1 on CFDs

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. For example, a new trader (on 50:1 leverage) may be required to put up £200 to hold a £10,000 position. An experienced trader (on 100:1 leverage) would only be required to put up £100 to hold a £10,000 position.

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

Simple Dealing Rates

View upcoming margin requirements.

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.

The Tiered Margin Watcher

FXCM's Tiered Margin Watcher is designed to notify you in advance of margin calls, which can give you more time to take action to potentially avoid them. Watch the video to find out more, or check out our Margin Watcher FAQs