Margin calculation examples

Example 1: Buying a rolling spot FX product

Assuming your deposit currency is USD, the following margin terms are available for major FX instruments:

Notional Position Value, USD Leverage Rate
Notional Position Value, USD 300,000 1:1000
300,000 — 2,000,000 1:500
2,000,000 — 3,000,000 1:100
Over 3,000,000 1:25

Let's open a position Buy 1.0 lots EURUSD at 1.07280.

Notional position value in account's currency (USD) is 1.0 lots x 100,000 x 1.07280 = 107,280 USD, which is less than the 1st tier of 300,000 USD.

Therefore, the leverage of 1:1000 will be applied to this position, and the margin requirements will be calculated as 107,280 / 1000 = 107.28 USD.

Example 2: Buying a cash index CFD product

Assuming that your deposit currency is USD, the following terms are available for cash index CFDs:

Notional Position Value, USD Leverage Rate
Notional Position Value, USD 150,000 1:500
150,000 — 1,000,000 1:200
1,000,000 — 1,400,000 1:50
Over 1,400,000 1:10

Let's open a position Buy 50.0 lots on [FTSE100] at 7,114.00.

[FTSE100] is quoted in GBP, so the notional position value in account's currency (USD) is 50.0 lots x 7,114.00 x 1.28 = 455,296 USD.

The above value is more than the 1st tier of 150,000 USD, but less than the 2nd tier of 1,000,000 USD.

Therefore, the leverage of 1:500 will be applied to the first 150,000 USD of this position, and the leverage of 1:200 will be applied to the remainder, so the margin requirements will be calculated as 150,000 / 500 + 305,296 / 200 = 1,826.48 USD.

Summary margin requirements for EURUSD and [FTSE100] positions from the above examples will be 107.28 + 1,826.48 = 1,933.76 USD.