EXECUTION & LEVERAGE

 
 

Forex Leverage

Marketsforu uses a dynamic forex leverage model on the MT4 and xStation platforms, which automatically adapts to clients trading positions. As the volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

This is done per trading instrument, so if a client has positions open across multiple instruments, the leverage will be calculated separately on each forex symbol. For example, if a trader has 300 lots Buy on USD/JPY, and then starts trading EUR/USD, his/her margin requirement for EUR/USD, will not be affected by the existing USD/JPY positions.

The sum of the positions is calculated in the following way. Consider a trader has 300 lots Buy and 200 Lots Sell. To calculate the required margin, one would take the side with the largest volume (sum). In this example, the side with the largest exposure is the 300 Buy, and as such, 300 would be the value used in calculating the required margin. Furthermore, a trader with 6 positions of 50 lots Buy (or Sell), and a trader of a single position of 300 lots Buy (or Sell), would require the same margin; given their accounts have identical leverage settings.

marketsforu

Please note, that if the account leverage is less than the value table provided, then the account leverage will be considered instead.

Example 1

Client Account Leverage – 1:100

Consider a USD account with 300 Buy lots USD/JPY.
in this example, the account leverage is less than or equal to all relevant values in the Leverage Monitor table, so the margin required would be unaffected.

So the trader would require 120,000 USD margin for USD/JPY and 238,000 USD margin for EUR/USD, thus giving a total margin of 358,000 USD for both positions.

Metals Margin Requirements

Marketsforu uses a dynamic leverage model on the MT4 and xStation platforms for trading precious metals, which automatically adapts to clients' trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

Again, this is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each symbol. For example, if a trader has a position in Silver and then starts trading Gold, his/her margin requirement for Gold will not be affected by the existing Silver positions.

marketsforu

Futures Margin Requirements

Marketsforu uses a dynamic leverage model on the MT4 and xStation platforms for trading futures, which automatically adapts to clients' trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

marketsforu

Energy Futures / Spot Margin Requirements

Marketsforu uses a dynamic leverage model for trading future energies, which automatically adapts to clients' trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

marketsforu

Indices Margin Requirements

Marketsforu uses a dynamic leverage model for indices, which automatically adapts to clients' trading positions. As the amount of indices of a client increases, the leverage offered decreases accordingly; as per the following table.

Shares Margin Requirements

As in forex trading, Marketsforu uses a dynamic leverage model for trading shares, which automatically adapts to clients' trading positions. As the amount of shares of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

 

Related links:

Execution & Leverage | Portfolio Management | Audio Commentary | Portfolio Margin | Deposit Funds