Margin
The maximum available margin is 1% (100x leverage). Higher leverage magnifies both your gains and losses, traders always have the option of employing a lower degree of leverage.
The minimum margin requirement is approximately $100 per lot in a mini account and approximately $1000 per lot in a standard account. The requirements for leverage may vary with account size or market conditions, and may be changed from time to time at the sole discretion of FOREX.com.
Margin Example
USD Based Currency Pair
Margin = (Contract size / Leverage)
You have $1000 in a mini account. To calculate the margin required to execute 8 mini lots of USD/JPY (80,000 USD) at 100x leverage, simply divide the deal size by the leverage amount e.g. (80,000 / 100 = 800). You post $800 margin for this trade, leaving a $200 balance in your account.
Non-USD Based Currency Pair
Margin = [(Contract Size x Price) / Leverage]
In this example, you have $5,000 in a standard account. You want to execute 3 lots of EUR/USD (300,000 Euros) at the current market price of 1.27100using 100x leverage. To calculate the required margin for this position, multiply the deal size (300,000) by the price (1.27100) and then divide by the leverage (100x), e.g. [(300,000*1.27100)/100] = $3,813. After you executed this trade, you would have a $1,187 balance in your account.
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The trading platform calculates margin requirements and checks available funds before allowing you to successfully enter a new position. If you do not have adequate funds available to enter a new position, you will receive an "insufficient margin funds" message when attempting to deal.
If the unrealized P&L of your net total open position falls below your margin balance, your account is under margined and all your open positions may be liquidated. To avoid liquidation of your positions, do not use your entire account balance as margin for open positions. Instead, leave enough funds in your account to withstand a market movement against your open positions. We suggest you always use stop loss orders in an attempt to limit your downside risk.
Please contact FOREX.com client services should you wish at any time to use a lower degree of leverage or otherwise adjust the margin settings in your account.
