Please be aware that the maximum leverage offered by CMX is 1:300.
Please note for positions above 1 million the maximum leverage will be 1:100, unless the traded instrument has lower leverage by default.
* Volume > 1 mil on GOLD Margin will be 2% and WTI 200%
* Please be aware of the margin requirements for the below instruments:
Margin & Leverage is used in most financial markets, but in the Forex market the leverage on offer is amongst the highest available. The leverage level in the Forex market can vary from 1:1, 1:50, 1:100 and higher. Moreover, the leverage is set by the broker.
To start trading on the Forex market you will need to create a trading account. The minimum top-up that you need to deposit on this account depends on the margin percentage agreed between you and the broker.
100,000 units of currency is the standard of trading. The margin for this level of trading would be 1-2%. When the margin is 1% the trader will need to top up his account with $1,000 to trade positions of $100,000. The leverage in this situation is 1:100, because 1 unit controls 100 units.
The fluctuations in the Forex Markets are lower than the fluctuations in the Equity Markets, so the leverages are always higher. The leverage in the Forex Market gives you the chance to control currencies 100 higher than the initial investment.
Leverage can also have a negative effect, if the underlying currency in your trades moves against you, the leverage will increase your losses.
When CMX Markets notices your margin drops below the required levels, we might initiate a “margin call” against you. In this case, we will either ask you to top-up your account with more funds or close out some or all of your positions, in order to limit losses for both you and us.
What Does BUY 1 Lot of EUR/USD Mean?
1 lot of EUR/USD means that a client has bought 1 standard contract of 100,000 Euros and sold the equivalent of this contract in US Dollars.
For example, when the rate is EUR/USD = 1.2500, a client would need to exchange $125,000.00 in order to buy 1 standard contract of € 100,000.00. The margin calculation is based on the Base Currency, so to buy/sell 1 lot of EUR/USD you must have to have a Free Margin of the equivalent in the base currency of the quoted currency.
Things to consider (Leverage is 1:100, Margin is 1% & EUR/USD rate is 1.2500), 1 lot of standard contract of EUR/USD = €100,000.00 Euros. In order to find the USD equivalent, we have to multiply the Contract size in dollars. Therefore, 1 lot of EUR/USD = 125,000.00.
Things to consider (Leverage is 1:100, Margin is 1% & EUR/USD rate is 1.2500), 1 lot of standard contract of EUR/USD = €100,000.00. In order to find the Dollar equivalent, we have to multiply the Contract size by dollars. Therefore 1 lot of EUR/USD = 125,000.00.
As the Margin is 1% of the Base Currency. That means that 1/100 x Dollar Margin requirement, 0.01 * $125,000.00 = $1250.00. The client will need to have a minimum of $1,2500.00 to be able to sell/buy this position.
Another example on GBP/USD:
A client wants to open 4 mini contacts (40,000 base currency) = 0.4 Lots. At the rate of GBP/USD = 1.5000 (£ 40,000.00 = $60,000.00). Therefore after margin calculation, 1/100 * $60,000 = $600. Consequently, the client needs to have a minimum of $600 in order to be able to buy/sell this position.
Your type of trader will be greatly influenced by your use of Leverage and Margins. Profitable trading requires a well-thought-out use of trading strategy, trading stops and money management.
The choice of required leverage varies from 1:1 up to 1:300 at CMX Markets Looking to change your leverage level? Just submit your request to: email@example.com
Be cautious when increasing or decreasing your leverage level. It can work in your favor if you use it wisely. Otherwise, it can cause large losses in profits.