Margin Requirements
Clients are offered a large selection of margin settings and traders
have the ability to select the degree of leverage or gearing they wish
to utilize. The default margin setting provides approximately 100:1
leverage (on standard accounts) , while at the lowest level of margin
available clients may elect to leverage their account equity by a factor
of 200.
Note: Leverage without proper risk management can
lead to large losses as well as gains.
Unless otherwise requested, all accounts will be set up on the most
lenient margin requirement based on account size.
| |
Account Type |
Default Margin
Level |
|
Lowest
Available Margin Level |
|
| |
Mini |
$50 Per Lot*
(approximately .5%) |
|
$50 Per Lot* |
|
| |
100K |
$1000 Per Lot*
(approximately 1%) |
|
$500 Per Lot* |
|
| |
100K
Interest Bearing |
$2000 Per Lot
(approximately 2%) |
|
$2,000 Per Lot |
|
|
* |
Not available for accounts
over $50,000. |
|
How to Go About Changing
Your Margin Requirement
You can apply to change your margin requirement online, which
will be applied to your account based on account equity. To increase or
decrease your margin requirement, please follow the steps below.
-
Go to
www.myfxcm.com.
-
Login using the same username and password as
your trading account.
-
Scroll over the "FORMS" button and click on
"Change Margin".
-
You will be able to choose from several options.
Depending on your account balance, the margin requirement can be as
low as $50 per Lot for Mini Accounts and $500 per Lot for 100K
Accounts.
-
Once processed, you will receive an e-mail
confirming your new margin.
Margin Watcher System
The market maker guarantees limited risk. If the equity in the
account drops below the margin required to maintain the open positions,
all open positions may be liquidated. This protects the trader from
losing more than the funds deposited into the trading account.
Rollover/Interest Policy
At 5:00 PM New York Time, funds are subtracted or added to
accounts with open positions because of the automatic rollover. For
accounts that have a margin requirement of 2% or more, funds are added
to the account for positions in which the client is long (holding) the
currency bearing the higher interest rate. Funds are deducted in the
opposite circumstance.
NOTICE TO TRADERS: Be advised that the
margin requirement is variable and may be changed at any time at the
sole discretion of the dealing desk, based on account equity,
simultaneous open positions, and market volatility.
The market maker always recommends the use of stop-loss orders for risk
management. The margin requirement should not be used as a substitute
for a risk management system. Using a low margin requirement increases
the amount of leverage, which allows the trader to place larger
positions with the same amount of capital. However, no one can guarantee
profits or freedom from loss.
|