Margin and Leverage
What Is Margin?
Margin is the amount of money you must have in your trading account to open and keep a position running. It acts as a security deposit that helps cover potential risks while you trade. Margin is usually shown as a percentage of the total trade size, such as 1% or 5%.
The main purpose of having funds in your trading account is to ensure there is enough margin available to support your open positions.
Example
If the margin requirement is 1% and you open a trade worth $1,000,000, you will need $10,000 in margin to maintain that position.
Margin Requirements for Forex, Gold, and Silver
When trading Forex, Gold, or Silver, you can open new positions as long as the required margin for the trade is less than or equal to your available free margin.
Hedged positions (buy and sell on the same instrument) require zero margin
New hedged trades can be opened even if the margin level drops below 100%
Margin Requirements for Other Instruments
For all non-Forex instruments, margin rules work slightly differently:
New positions can be opened if the required margin is within the available free margin
For hedged positions, a 50% margin requirement applies
New hedged trades are allowed only if the total margin required does not exceed the account’s total equity
Dynamic Margin on Cryptocurrencies
For Cryptocurrency CFDs, margin is dynamic. This means leverage automatically changes based on the trade size of each crypto instrument.
As your trading volume increases:
Leverage decreases
Margin percentage increases
This system helps manage risk during high market volatility.
Margin Requirements for Other Instruments
For all non-Forex instruments, margin rules work slightly differently:
New positions can be opened if the required margin is within the available free margin
For hedged positions, a 50% margin requirement applies
New hedged trades are allowed only if the total margin required does not exceed the account’s total equity
Margin Calculation by Instrument
Margin is calculated individually for each instrument you trade. If you hold positions in multiple markets, the margin for each position is assessed separately, not combined.
Important Reminder
Any margin examples shown are for explanation purposes only. Actual margin requirements may vary based on market conditions, instrument type, and account settings. Always rely on the values displayed in your trading platform for accurate calculations.