Margin Requirements
Margin Requirements (Based on Total Volume of Open Positions) for Major Currency Pairs on Different Account Types:
micro.mt4
| Notional Value (USD) | Notional Value (EUR) | Leverage Offered |
|---|---|---|
| 0 - 1,000,000 | 0 - 700,000 | 1:500 |
| 1,000,000 - 2,000,000 | 700,000 - 1,400,000 | 1:200 |
| 2,000,000 - 3,000,000 | 1,400,000 - 2,100,000 | 1:100 |
| 3,000,000- 5,000,000 | 2,100,000- 3,500,000 |
1:33 |
| over 5,000,000 | over 3,500,000 |
1:10 |
classic.mt4, classic.systematic, classic.zulutrade
pamm.mt4, pamm.ndd.mt4, pamm.ecn.mt4, pamm.systematic, classic.ndd.mt4, classic.ndd.zulutrade.mt4, pro.ecn.mt4
Margin Requirements (Based on Total Volume of Open Positions) for USDRUR on All Account Types Offering USDRUR:
Margin Requirements (Based on Total Volume of Open Positions) for Spot Metals on All Account Types Offering Spot Metals:
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Example: Calculating Margin with Floating Leverage
Let's look at how floating leverage works:
1. We'll start by opening Position #1 Buy 20 lots GBPUSD 1.4584.
The notional value is: 20 * 100,000 * 1.4584 = 2,916,800 USD.
Here, we can see that the notional value (2,916,800 USD) is less than 3,000,000 USD, meaning the leverage will be 1:500.The margin is: 2,916,800/500 = 5833.60 USD.
2. Next we will open position #2 Sell 15 lots EURUSD 1.3175.
The notional value is: 15 * 100,000 * 1.3175 = 1,976,250 USD.The aggregrate notional value of the two positions:
2,916,800 (for position # 1) + 1,976,250 (for position # 2) = 4,893,050 USD.
Now, the notional value of open positions exceeds 3,000,000 USD, but is less than 5,000,000 USD. For the first 3,000,000 USD the leverage will be 1:500. For the remainder of the volume, the leverage will be 1:200.
The margin is: 3,000,000/500 + 1,893,050/200 = 15,465.25 USD.
3. Next we will open position #3 Buy 10 lot GBPUSD 1.4590.
The notional value is: 10 * 100,000 * 1.4590 = 1,459,000 USD.The aggregrate notional value of the three positions:
2,916,800 (for position # 1) + 1,976,250 (for position # 2) + 1,459,000 (for position # 3) = 6,352,050 USD.
Now, the notional value of open positions exceeds 5,000,000 USD, but is less than 10,000,000 USD. Therefore, the leverage is 1:500 for the first 3,000,000, 1:200 for the next 2,000,000 and 1:100 for the rest.
The margin is: 3,000,000/500 + 2,000,000/200 + 1,352,050/100 = 29,520.50 USD.
4. Now we will open position #4 Buy 25 lots of EURUSD 1.3164.
The notional value is: 25 * 100,000 * 1.3164 = 3,291,000 USD.The aggregrate notional value of the four positions:
2,916,800 (for position # 1) + 1,976,250 (for position # 2) + 1,459,000 (for position # 3) + 3,291,000 (for position # 4) = 9,643,050 USD.
Now, the notional value of open positions exceeds 7,000,000 USD, but is less than 10,000,000 USD. Therefore, the leverage is 1:500 for the first 3,000,000, 1:200 for the next 2,000,000 and 1:100 for the next 2,000,000. For the remaining part, the leverage will be 1:33.
The margin is: 3,000,000/500 + 2,000,000/200 + 2,000,000/100 + 2,643,050/33 = 116,092.42 USD.
5. Now, we'll open position #5 Buy 10 lots EURUSD 1.3188.
The notional value is: 10 * 100,000 * 1.3188 = 1,318,800 USD.The aggregrate notional value of the five open positions:
2,916,800 (for position # 1) + 1,976,250 (for position # 2) + 1,459,000 (for position # 3) + 3,291,000 (for position # 4) + 1,318,800 (for position #5) = 10,961,850 USD.
The notional value now exceeds 10,000,000 USD. Therefore, the leverage is 1:500 for the first 3,000,000, 1:200 for the next 2,000,000 and 1:100 for the next 2,000,000 and 1:33 for the next 3,000,000 USD. For the remaining part, the leverage will be 1:10.
The margin is: 3,000,000/500 + 2,000,000/200 + 2,000,000/100 + 3,000,000/33 + 961,850/10 = 223,094.09 USD.
6. Let's say we close position #2 Buy 15 lots EURUSD 1.3175.
The notional value is: 15 * 100,000 * 1.3175 = 1,976,250 USD.Taking the closing of position # 2 taken into account, the aggregrate notional value of the four open positions is:
2,916,800 (for position # 1) + 1,459,000 (for position # 3) + 3,291,000 (for position # 4) + 1,318,800 (for position #5) = 8,985,600 USD.
Here, the total notional value has decreased as a result of the second position being closed, leading to a subsequent decrease in the marginal requirements. Notice that the first part of the total volume to be cleared from the account is the part with the highest margin requirement, 1:10.
The margin is: 3,000,000/500 + 2,000,000/200 + 2,000,000/100 + 1,985,600/33 = 95,169.69 USD.
