Leverage Documentation

Forex Trading Partner of the Asian Champions League

Forex Leverage

FxPro uses a dynamic forex leverage model, which automatically adapts to clients trading positions. As the volume, per Instrument, of a client increases, the maximum leverage offered decreases accordingly; as per the table below. The following leverage structure applies to trading mt4 forex only.

Open Lots Maximum Leverage
0-100 Max 1:500*
>100-200 Max 1:200*
>200-300 Max 1:100*
>300-500 Max 1:50*
500+ Max 1:33*
* or trader leverage, whichever is less

This is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each Forex symbol. For example, if a trader has 300 lots Buy on USDJPY, and then starts trading EURUSD, his/her margin requirement for EURUSD, will not be affected by the existing USDJPY positions.

The sum of the positions is calculated in the following way. Consider a trader has 300 lots Buy and 200 Lots Sell. To calculate the required margin, one would take the side with the largest volume (sum). In this example, the side with the largest exposure is the 300 Buy, and as such, 300 would be the value used in calculating the required margin. Furthermore, a trader with six (6) positions of 50 lots Buy (or Sell), and a trader of a single position of 300 lots Buy (or Sell), would require the same margin; given their accounts have identical leverage settings.

Please note, that if the account leverage is less than the value table provided, then the account leverage will be considered instead.

Example 1:

Client Account Leverage – 1:100

Consider a USD account with 300 Buy lots USDJPY.

In this example, the account leverage is less than or equal to all relevant values in the Leverage Monitor table, so the margin required would be unaffected.

Lots Maximum
Leverage		 Applicable
Leverage		 Margin
0-100 1:500 1:100
100 (lots) * 100,000
100 (leverage)
= 100,000 USD (margin)
100-200 1:200 1:100
100 (lots) * 100,000
100 (leverage)
= 100,000 USD (margin)
200-300 1:100 1:100
100 (lots) * 100,000
100 (leverage)
= 100,000 USD (margin)
Total Required Margin: 300,000 USD

Example 2:

Account Leverage – 1:500

Consider a USD account with 250 Buy lots USDJPY.

In this example, the account leverage is more than or equal to values in the Leverage Monitor table, so the margin required would be calculated as follows:

Lots Maximum
Leverage		 Applicable
Leverage		 Margin
0-100 1:500 1:500
100 (lots) * 100,000
500 (leverage)
= 20,000 USD (margin)
100-200 1:200 1:200
100 (lots) * 100,000
200 (leverage)
= 50,000 USD (margin)
200-300 1:100 1:100
50 (lots) * 100,000
100 (leverage)
= 50,000 USD (margin)
Total Required Margin: 120,000 USD

Example 3:

Now consider that the same trader also opens a position of 300 Lots EURUSD Buy (or Sell); with the EURUSD rate at 1.40000.

Lots Maximum
Leverage		 Applicable
Leverage		 Margin
0-100 1:500 1:500
100 (lots) * 100,000
500 (leverage)
= 20,000 EUR (margin)
100-200 1:200 1:200
100 (lots) * 100,000
200 (leverage)
= 50,000 EUR(margin)
200-300 1:100 1:100
100 (lots) * 100,000
100 (leverage)
= 100,000 EUR(margin)
Total Required Margin: 170,000 EUR * 1.4 (rate) = 238,000 USD

So the trader would require 120,000 USD margin for USDJPY and 238,000 USD margin for EURUSD, thus giving a total margin of 358,000 USD for both positions.

Metals Margin Requirements

As in forex trading, FxPro uses a dynamic leverage model for trading precious metals and futures, which automatically adapts to clients, trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the table below.

Open Lots Margin Requirement
0-50 2%
>50-100 4%
>100-150 6%
>150-300 10%
>300 15%

Again, this is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each symbol. For example, if a trader has a position in Silver and then starts trading Gold, his/her margin requirement for Gold will not be affected by the existing Silver positions.

Example 1 Metals

Consider a USD account with 50 Buy (or Sell) lots of Gold at spot price of 1.500 USD.

Lots Margin Requirement Margin
50 2% 2%(margin req.) *100(oz) *50(lots) * 1500(price of gold spot) = 150,000 USD

Example 2 Metals

Consider a USD account with 150 Buy (or Sell) lots of Gold at spot price of 1.500 USD

Lots Margin Requirement Margin
50 2% 2%(margin req.) *100(oz) *50(lots) *1500(price of gold spot) = 150,000 USD
50-100 4% 4%(margin req.) *100(oz) *50(lots) *1500(price of gold spot) = 300,000 USD
100-150 6% 6%(margin req.) *100(oz) *50(lots) *1500(price of gold spot) = 450,000 USD
Total Margin Required = 900,000 USD

Example 3 Metals

Consider a USD account with 50 Buy lots of Gold at spot price of 1.500 USD, wants to trade 150 Sell lots of Gold at spot price of 1.500 USD ; Margin required will be computed on the 150 Sell lots, i.e. Total Margin Required = 900,000 USD

Futures Margin Requirements

Open Lots Margin Requirement
0-50 Standard Margin Per Instrument
>50-100 Margin*2
>100-150 Margin*5
>150-300 Margin*8
>300 Margin*10

Example 1 Futures

Consider a USD account with 10 Buy (or Sell) lots of Dow Jones Futures

Lots Margin Per 1 Lot Margin
10 $1000 10(Lots) * $1,000(margin per lot) = 10,000 USD

Example 2 Futures

Consider a USD account with 250 Lots of Nasdaq Futures

Lots Margin Per 1 Lot Margin
50 $500 50(Lots)*$500(margin per lot)= 25,000 USD
50-100 $500*2 50(Lots)*$ 500(margin per lot)*2(margin multiplier)= 50,000 USD
100-150 $500*5 50(Lots)*$500(margin per lot)*5(margin multiplier)= 125,000 USD
150-250 $500*8 100(Lots)*$500(margin per lot)*8(margin multiplier)= 400,000 USD
Total Margin Required = 600,000 USD

Example 3 Futures

Consider a USD account with 50 Buy lots of Nasdaq Futures, and wants to trade 250 Sell lots of Nasdaq Futures ; Margin required will be computed on the 250 Sell lots, i.e. Total Margin Required = 600,000 USD