Leverage

Example 2

Client Account Leverage: 500X

Consider a USD account with 150 Buy (or Sell) lots of USDCAD. We can see in the table above that the first 100 lots in FX Majors will have 500X leverage, the next 100 will have 250X, and anything above 200 lots will have 100X. In this example, the account's maximum leverage (500X) is equal to the instrument's leverage (500X), meaning that trades in the account will be able to have the maximum leverage given for this instrument. The margin required would be:

Example 3

Client Account Leverage: 500X

Consider a USD account with 150 Buy (or Sell) lots of USDCAD, and 150 Buy (or Sell) lots of USDJPY. In this example, the 2 instruments traded both fall within the fx majors group, so we will consider the individual size of both trades and the leverage brackets of the fx majors group when calculating the leverage requirement. The account's leverage (1:500) is equal to the instruments' leverage (1:500), so the margin required would be:

Example 4

Client Account Leverage: 300X

Consider a USD account with 150 Buy (or Sell) lots of USDCAD, and 150 Buy (or Sell) lots of USDJPY. In this example, the 2 instruments traded both fall within the fx majors group, so we will consider the individual size of both trades and the leverage brackets of the fx majors group when calculating the leverage requirement. The account's leverage (1:300) is lower than the instruments' leverage (1:500), so the maximum leverage available will be 1:300. The margin required would be:

Example 5

Client Account Leverage: 300X

Consider a USD account with 150 Buy (or Sell) lots of USDCAD, and 150 Buy (or Sell) lots of USDJPY, and a 250 Buy (or Sell) of USDNOK. In this example, USDCAD and USDJPY fall within the fx majors group, so we will consider the size of both trades and the leverage brackets of the fx majors group when calculating their leverage requirement, and USDNOK falls within the fx minors group so we will consider it separately. The account's leverage (1:300) is lower than the instruments' leverage (1:500), so the maximum leverage available will be 1:300. The margin required would be:

Example 6

Client Account Leverage: 500X

Consider a USD account with 100 Buy lots and 250 Sell lots of USDCAD.

In case you have opposite open trades in the same instrument (i.e. hedging trades), margin will only be required for your net open position (total Buy lots - total Sell lots). In this example, the net position is 100 Buy lots - 250 Sell lots > 150 Sell lots, and the account's leverage (1:500) is equal to the instrument's leverage (1:500). The required margin will be calculated as shown below: