Leverage and Margin
TRADING ON LEVERAGE
You can trade Forex and CFDs on leverage. This can allow you to take advantage of even the smallest moves in the market. When you trade with FXCM, your trades are executed using borrowed money. For example, 100:1 leverage allows you to trade with $10,000 in the market by setting aside only $100 as a security deposit. Remember, higher leverage can amplify your losses.
All new accounts are defaulted to 400:1 leverage on FX and CFDs. Accounts that are funded in excess of 50,000 CCY will be moved to a leverage of up to 100:1 on FX and 200:1 on CFD's. The leverage on your account will then be adjusted based on the equity in your account. FXCM reserves the final right, in its sole discretion, to change your leverage settings.
|Equity1||Up to $50,000||$50,000 +|
|FX Leverage||up to 400:1||up to 100:1|
|CFD Leverage||up to 400:1||up to 200:1|
Do Margin requirements change?
Margin requirements can periodically change to account for changes in market volatility and currency exchange rates. For example, the margin requirement (MMR) for a specific currency pair is calculated as a percentage of the notional value of such pair. As the exchange rates for any specific currency pair fluctuate up or down, the margin requirement for that pair must be adjusted. As an example, if the Euro strengthens against the US dollar, more margin will be required to hold a EUR/USD position in a US dollar denominated account. FXCM does not anticipate more than one update a month, however extreme market movements or event risk may necessitate unscheduled intra-month updates.