
Leverage and margin requirements
Read our leverage and margin conditions to trade and invest wisely
What are leverage and margin?
Leverage is a way to boost your buying power. It allows you to deposit a small amount, but trade with more basically borrowed capital. It similar to a loan, meaning that we'll lend you a set amount of money so that you can buy a larger amount of an asset, and earn a larger profit on your successful trades.
Pip Value = (1 pip / Quote Currency Exchange Rate to Account Currency) * Lot size in units
Margin refers to the certain level of funds you need to keep in your account to cover any possible losses on your trades. This is also known as good faith deposit. You'll need to maintain your margin level to open and maintain your positions.
Read on to learn more about our leverage and margin levels.
Leverage and margin requirements at a glance
Dynamic margin requirements
Please note: FXTM has Dynamic Margin Requirement (DMR), meaning the amount of margin may change based on specific market conditions.
FXTM applies DMR to affected instruments for 10 minutes before and 2 minutes after some significant economic news releases. DMR is also applied 60 minutes ahead of market closures for weekends and public holidays.
The leverage available during these times decreases from a maximum of 1:3000 to 1:200. This means that margin requirements will be higher for these periods.
Check out our trading account comparison page here to learn more about our leverage and margin requirement. Feel free reach out to us directly if something's not clear.