Because of the deep liquidity in the forex market, you can trade forex 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. Experienced traders may trade with up to Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit.
The amount of margin that you are required to put up for each currency pair varies by the leverage profiles listed above.
For example, a new trader on An experienced trader on 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. FXCM does not anticipate more than one update a month, however extreme market movements or event risk may necessitate unscheduled intra-month updates.
View upcoming margin requirements. FXCM's Tiered Margin Watcher is designed to notify you in advance of margin calls, which can give you more time to take action to potentially avoid them. Watch the video below to find out more, or check out our Margin FAQs below. Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses.
Trading foreign exchange with any level of leverage may not be suitable for all investors. Mini accounts offer 18 CFD instruments and up to 21 currency pairs. Mini accounts default to Dealing Desk execution where price arbitrage strategies are prohibited. FXCM determines, at its sole discretion, what encompasses a price arbitrage strategy. Mini accounts utilising prohibited strategies may be switched to No Dealing Desk execution.
Mini accounts offer spreads plus mark-up pricing. Spreads are variable and are subject to delay. Experienced traders can trade Mini Accounts with up to Mini accounts with equity greater than 20, CCY may be switched to a Standard account with Overview What is Forex? Overview What Are Indices? Overview Why Trade Commodities? How does trading on margin work with FXCM? How does Tiered Margin work on Trading Station?
How can I check my usable margin levels? When will my positions be liquidated on Trading Station? What is the Margin Watcher feature on Trading Station? What if the market moves back in my favor? What is the liquidation level on an MT4 account? When will my positions be liquidated on MT4?More...