LEVERAGE & MARGIN REQUIREMENTS

A deeper look into your account

UNDERSTANDING LEVERAGE AND MARGIN REQUIREMENTS

Margin and leverage share a dynamic relationship and need to always be taken into account when opening a new trade. They reflect the amount of equity that is required in your account to open and maintain a position and as with all leveraged products, understanding the requirements can help you minimise capital risk.

LEVERAGE

Leverage can best be described as an investment strategy where the client borrows funds to increase the potential return of an investment. In other words, it provides you the opportunity to control a larger amount of money than what you are actually investing. This means that you can earn more from the same amount of investment if markets move in your favour, at the risk of losing more if markets move against you.

MARGIN

Margin is the level of funds you need to have in your trading account in order to open and maintain a specific trading position. Calculating and understanding your margin requirements allows you to create an effective risk management.

The margin is a percentage of the size of the trade you want to open, and it is not a fee. It’s simply deducted from your account and returned when the position is closed. The total amount held to maintain all your current open positions is called “used margin”. The remaining balance in your account is available to open new positions.

M4MARKETS MARGIN
REQUIREMENTS AND LEVERAGE

INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
AUDCAD	0.00001	100000 AUD	10 CAD	5%	1:20
AUDCHF	0.00001	100000 AUD	10 CHF	5%	1:20
AUDJPY	0.001	100000 AUD	1000 JPY	5%	1:20
AUDNZD	0.00001	100000 AUD	10 NZD	5%	1:20
AUDUSD	0.00001	100000 AUD	10 USD	5%	1:20
EURAUD	0.00001	100000 EUR	10 AUD	5%	1:20
EURHUF	0.00001	100000 EUR	1000 HUF	5%	1:20
EURNOK	0.00001	100000 EUR	10 NOK	5%	1:20
EURNZD	0.00001	100000 EUR	10 NZD	5%	1:20
EURSEK	0.00001	100000 EUR	10 SEK	5%	1:20
EURTRY	0.00001	100000 EUR	10 TRY	5%	1:20
EURZAR	0.00001	100000 EUR	10 ZAR	5%	1:20
GBPAUD	0.00001	100000 GBP	10 AUD	5%	1:20
GBPNZD	0.00001	100000 GBP	10 NZD	5%	1:20
GBPZAR	0.00001	100000 GBP	10 ZAR	5%	1:20
NZDCAD	0.00001	100000 NZD	10 CAD	5%	1:20
NZDCHF	0.00001	100000 NZD	10 CHF	5%	1:20
NZDJPY	0.001	100000 NZD	1000 JPY	5%	1:20
NZDUSD	0.00001	100000 NZD	10 USD	5%	1:20
USDCNH	0.00001	100000 USD	10 CNH	5%	1:20
USDCZK	0.00001	100000 USD	10 CZK	5%	1:20
USDDKK	0.00001	100000 USD	10 DKK	5%	1:20
USDHKD	0.00001	100000 USD	10 HDK	5%	1:20
USDHUF	0.00001	100000 USD	1000 HUF	5%	1:20
USDMXN	0.00001	100000 USD	10 MXN	5%	1:20
USDNOK	0.00001	100000 USD	10 NOK	5%	1:20
USDPLN	0.00001	100000 USD	10 PLN	5%	1:20
USDRUB	0.00001	100000 USD	10 RUB	5%	1:20
USDSEK	0.00001	100000 USD	10 SEK	5%	1:20
USDSGD	0.00001	100000 USD	10 SGD	5%	1:20
USDTRY	0.00001	100000 USD	10 TRY	5%	1:20
USDZAR	0.00001	100000 USD	10 ZAR	5%	1:20
EURMXN	0.00001	100000 EUR	10 MXN	5%	1:20
EURPLN	0.00001	100000 EUR	10 PLN	5%	1:20
HKDJPY	0.001	100000 HKD	1000 JPY	5%	1:20
NOKSEK	0.00001	100000 NOK	10 SEK	5%	1:20
CADCHF	0.00001	100000 CAD	10 CHF	3.33%	1:30
CADJPY	0.001	100000 CAD	1000 JPY	3.33%	1:30
CHFJPY	0.001	100000 CHF	1000 JPY	3.33%	1:30
EURCAD	0.00001	100000 EUR	10 CAD	3.33%	1:30
EURCHF	0.00001	100000 EUR	10 CHF	3.33%	1:30
EURGBP	0.00001	100000 EUR	10 GBP	3.33%	1:30
EURJPY	0.001	100000 EUR	1000 JPY	3.33%	1:30
EURUSD	0.00001	100000 EUR	10 USD	3.33%	1:30
GBPCAD	0.00001	100000 GBP	10 CAD	3.33%	1:30
GBPCHF	0.00001	100000 GBP	10 CHF	3.33%	1:30
GBPJPY	0.001	100000 GBP	1000 JPY	3.33%	1:30
GBPUSD	0.00001	100000 GBP	10 USD	3.33%	1:30
USDCAD	0.00001	100000 USD	10 CAD	3.33%	1:30
USDCHF	0.00001	100000 USD	10 CHF	3.33%	1:30
USDJPY	0.001	100000 USD	1000 JPY	3.33%	1:30

INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
UKOIL	0.001	1000 barrels	10 USD	10%	1:10
USOIL	0.001	1000 barrels	10 USD	10%	1:10
NGAS	0.001	10,000	100 USD	10%	1:10
XAUUSD	0.01	100 oz	1 USD	5%	1:20
XAUEUR	0.01	100 oz	1 EUR	10%	1:10
XAGUSD	0.001	5000 oz	50 USD	10%	1:10
XAGEUR	0.001	5000 oz	50 EUR	10%	1:10
XPDUSD	0.01	100 oz	1 USD	10%	1:10
XPTUSD	0.01	100 oz	1 USD	10%	1:10
XCUUSD	0.001	1 tonne	0.001 USD	10%	1:10

INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
AUS200	0.01	1 contract	0.01 AUD	5%	1:20
DE30	0.01	1 contract	0.01 EUR	5%	1:20
ES35	0.01	1 contract	0.01 EUR	10%	1:10
F40	0.01	1 contract	0.01 EUR	5%	1:20
HK50	0.01	1 contract	0.01 HKD	10%	1:10
INDIA50	0.001	1 contract	0.001 USD	10%	1:10
JP225	0.01	10 contracts	0.1 JPY	5%	1:20
NETH25	0.01	1 contract	0.01 EUR	10%	1:10
EU50	0.01	1 contract	0.01 EUR	5%	1:20
SWI20	0.01	1 contract	0.01 CHF	10%	1:10
UK100	0.01	1 contract	0.01 GBP	5%	1:20
US30	0.01	1 contract	0.01 USD	5%	1:20
US500	0.01	1 contract	0.01 USD	5%	1:20
US100	0.01	1 contract	0.01 USD	5%	1:20