Margin and Leverage
At FXTRADING.com, with low margins and fees, we ensure our clients have the best possible conditions for their trading journey with competitive margins and fees. We offer flexible leverage, allowing traders to maximize their trading potential while adhering to global regulatory standards.
How is Margin Calculated?
Similar to collateral, the margin is the amount of money required to be deposited into a trading account to open a trade, which is usually a fraction of the underlying market cost.

How does margin work in a long position?

Example 1: Buying GBP/USD

A trader buys 1 contract of GBP/USD (100,000 GBP) at $1.2650.

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If the price rises to $1.2800 (+150 pips), the trader profits $1,500.
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If the price falls to $1.2600, the trader incurs a $500 loss.
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At 400:1 leverage, only $316.25 margin is required to open the trade

How does margin work in a short position?

Example 2: Selling USD/JPY

A trader sells 5 contracts of USD/JPY (100,000 USD per contract) at ¥107.25.

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If the price drops to ¥106.50 (-75 pips), the trader profits $3,500.
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If the price rises to ¥107.70, the trader incurs a $2,100 loss.
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At 400:1 leverage, only $1,250 margin is required to open the trade
What is Margin & Leverage?
Margin acts as a deposit required to open and maintain a trading position, typically a fraction of the trade‘s total value. Leverage allows traders to amplify their market exposure by borrowing funds, increasing both potential profits and risks.
  • Amplify Trades with Margin & Leverage at FXTRADING.com
    • Leverage up to 2000:1
    • Live risk exposure management
    • Mandatory 50% margin close-out rule
    • 100% margin call level
    • Negative balance protection
Regulatory Compliance & Protection
Negative Balance Protection
Our stop-out level is 50%, meaning that when your margin level falls below 50%, open positions are automatically closed until the margin level is back above 100%.
ASIC & Vanuatu Regulatory Update
FXTRADING.com operates under a dual regulatory framework:
  • ASIC (AFSL 337985): FXTRADING.com is authorised and regulated by the Australian Securities and Investments Commission, ensuring strict compliance with Australian financial services laws.
  • VFSC (License No. 41694): Our international operations are regulated by the Vanuatu Financial Services Commission, providing global clients with access to competitive trading conditions under a robust regulatory environment.
Trade a Wide Range of Instruments
Forex CFD
Trade in the world‘s most liquid market with competitive spreads and leverage.
Crypto CFD
Enjoy 24/7 trading on popular digital assets like Bitcoin and Ethereum with swap-free options.
Share CFD
Speculate on the price movements of leading global companies without owning the underlying assets.
Spot Metals CFD
Trade gold and silver with tight spreads and high liquidity, ideal for hedging and investment.
Energy CFD
Access the energy market by trading oil and gas CFDs with competitive pricing and leverage.
Indices CFD
Invest in global stock indices, tracking major sectors such as tech, finance, and industry.
Leverage Levels at FXTRADING.com
Starting from 22nd of March 2021, the dynamic leverage function has been utilized at FXTRADING.com for both FX and gold products. The default leverage levels and the corresponding account balances can be seen in the table below:
FX Dynamic Leverage - Reduction ONLY

Gold Dynamic Laverage - Reduction ONLY

Equity is calculated as follows: Equity = Account balance + Floating result for open positions. Please note that changes in leverage on your MT4/MT5 trading account may not immediately update margin parameters in your trading terminal. We recommend re-logging into your trading terminal after adjusting leverage for accurate margin parameters.


Please exercise caution, especially when using the highest leverage, as leverage reduction, as outlined in the table above, may increase your margin requirement and could result in liquidation if margin/equity falls below 50%.


* Additionally, leverage for currencies other than USD may vary flexibly according to the day-to-day exchange rate.

With FX and Gold products, the dynamic leverage function works as follows:
The default leverage level starts at 500:1.
Leverage levels will be automatically reduced if the realized account balance rises to a higher account balance tier.
However, leverage levels will not automatically increase if the realized account balance falls to a lower account balance tier.
To increase leverage levels, clients need to apply directly within the FXTRADING.com client portal.
With other asset classes, leverage levels are fixed at
Asset Classes Leverage
Silver and Energies 100:1
Indices 100:1
Commodities 100:1
BTCUSD and ETHUSD 100:1
Other Cryptocurrencies 20:1
Stocks 10:1

* Please note that FXTRADING.com reserves the right to adjust leverage at any time.

* Please take into consideration the impact of leverage levels on your trading.

Frequently Asked Questions

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