CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the High risk of losing your money.
Margin & Leverage
  • Features

    • Leverage up to 30:1

    • Negative Balance Protection

    • Education and Support

    • Popular Tool for FX Traders

  • About Margin

    Margin is a deposit required to open and maintain positions. This is not a fee or a transaction cost, but rather a portion of your account equity set aside and allocated as a deposit to secure the open positions.

  • About Leverage

    Leverage is the ratio of your required margin to your trade size. Leverage allows you to increase your market exposure past your actual investment. Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 400:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 30,000 USD/JPY, your leverage will equate 30:1.

  • Specifics of Leverage

    Profiting Scenario

    Antonio and Mary decide to go long on USD/JPY currency pair at same price. The price of USD increases before closing this order.

    Question: How will leverage affect their returns if Antonio opens his position with a 100-to-one leverage and Mary opens her order with a 10 : 1 leverage?

    Answer: Antonio will profit by 41.5% and Mary will earn 4.15%.

    Losing Scenario

    Donald and Coco both go long on USD/JPY at the same price and its price drops before closing the position.

    Question: How will leverage affect the orders when Donald opens a position with 100-to-one leverage and Coco places her order with a 10:1 leverage?

    Answer: Donald will lose 41.5% and Coco's equity will decrease by 4.15%.

    Antonio Mary Donald Coco
    Trader's Equity $10,000 $10,000 $10,000 $10,000
    Leverage 100:1 10:1 100:1 10:1
    Volume $1,000,000 (buys 10 lots — $100k per lot) $100,000 (buys 1 lots — $100k per lot) $1,000,000 (buys 10 lots — $100k per lot) $100,000 (buys 1 lots — $100k per lot)
    NET Profit or Loss $4,150 $4.15 -$4,150 -$4.15
    Profit or Loss ratio 41.50% 4.15% -41.50% -4.15%
  • Forced liquidation

    Automated close takes place for retail clients when the level of funds, including unrealised net profits, on the account reaches 50% of the margin requirement for all open positions.