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

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INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
AUDCAD	0.00001	100000 AUD	10 CAD	0.1	1:1000
AUDCHF	0.00001	100000 AUD	10 CHF	0.1	1:1000
AUDJPY	0.001	100000 AUD	1000 JPY	0.1	1:1000
AUDNZD	0.00001	100000 AUD	10 NZD	0.1	1:1000
AUDUSD	0.00001	100000 AUD	10 USD	0.1	1:1000
CADCHF	0.00001	100000 CAD	10 CHF	0.1	1:1000
CADJPY	0.001	100000 CAD	1000 JPY	0.1	1:1000
CHFJPY	0.001	100000 CHF	1000 JPY	0.1	1:1000
EURAUD	0.00001	100000 EUR	10 AUD	0.1	1:1000
EURCAD	0.00001	100000 EUR	10 CAD	0.1	1:1000

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INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
XAUUSD	0.01	100 oz	1	0.5	1:200
XAUEUR	0.01	100 oz	1	0.5	1:200
XAGUSD	0.001	5000 oz	5	1	1:100
XAGEUR	0.001	5000 oz	5	1	1:100
XPDUSD	0.01	100 oz	1	2	1:50
XPTUSD	0.01	100 oz	1	2	1:50
USOIL	0.001	1000 barrels	1	1	1:100
UKOIL	0.001	1000 barrels	1	1	1:100
NGAS	0.001	10000 mmBtu	10	1	1:100

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INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
AUS200	0.01	1 contract	0.01 AUD	1	1:100
DE30	0.01	1 contract	0.01 EUR	1	1:100
ES35	0.01	1 contract	0.01 EUR	1	1:100
F40	0.01	1 contract	0.01 EUR	1	1:100
EU50	0.01	1 contract	0.01 EUR	1	1:100
UK100	0.01	1 contract	0.01 GBP	1	1:100
NETH25	0.01	1 contract	0.01 EUR	1	1:100
SWI20	0.01	1 contract	0.01 CHF	1	1:100
JP225	1	100	1 JPY	1	1:100
US100	0.01	1 contract	0.01 USD	1	1:100

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INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
AAL	0.01	100 Shares	1	10%	1:10
ADIDAS	0.01	100 Shares	1	10%	1:10
ADOBE	0.01	100 Shares	1	10%	1:10
AIG	0.01	100 Shares	1	10%	1:10
AIRBNB	0.01	100 Shares	1	10%	1:10
AIR-FRANCE	0.01	100 Shares	1	10%	1:10
ALBEMARLE	0.01	100 Shares	1	10%	1:10
ALCOA	0.01	100 Shares	1	10%	1:10
ALIBABA	0.01	100 Shares	1	10%	1:10
ALLIANZ	0.01	100 Shares	1	10%	1:10

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INSTRUMENT	MIN PRICE FLUCTUATION	VALUE OF 1 LOT	PIP VALUE PER 1 LOT	MARGIN REQUIREMENT %	LEVERAGE
BTCUSD	0.01	Contract Size 1	0.01 USD	3	1:33
ETHUSD	0.01	Contract Size 1	0.01 USD	3	1:33
XRPUSD	0.00001	Contract Size 1000	0.001 USD	3	1:33
LTCUSD	0.01	Contract Size 10	0.1 USD	3	1:33
DOGEUSD	0.00001	Contract Size 1000	0.001 USD	3	1:33
DASHUSD	0.01	Contract Size 10	0.1 USD	3	1:33
XMRUSD	0.01	Contract Size 10	0.1 USD	3	1:33
OMGUSD	0.0001	Contract Size 100	0.01 USD	3	1:33
NEOUSD	0.01	Contract Size 10	0.1 USD	3	1:33
QTUMUSD	0.0001	Contract Size 100	0.01 USD	3	1:33