FXCM enables currency trading to be conducted on a highly leveraged basis. Every trader is able to select the degree of leverage or gearing that the trader wishes to employ in trading. Unless the trader specifies otherwise, FXCM sets the leverage level at FXCM's most lenient requirement. The requirements for leverage vary with account size, and may be changed from time to time at the sole discretion of the dealing desk, based on volume traded and market conditions. Please note that without proper risk management, this high degree of leverage can lead to large losses as well as gains
Account
Type
|
Default
Margin Level
|
Lowest
Available
Margin Level |
| FXCM
100K Account
|
$1000
Per Lot (*)
|
$500
Per Lot (*) |
FXCM
100K –
Interest Bearing
|
$2000
Per Lot
|
$2,000
Per Lot |
(*) Not available for accounts over $100,000.
See default margin levels.
Default
Margin Levels (*) |
| $2,000
to $100,000 |
$1,000
per lot |
| $100,001
to $500,000 |
$2,000
per lot |
| $500,001
and above |
$3,000
per lot |
FXCM automatically rolls over all open positions
to the next settlement date at 5:00 PM New York
time. At 5PM New York time funds interest is subtracted
or added to accounts with open positions that
have been rolled over. In the No Dealing Desk you can earn positive rolls regardless of your margin level.
The interest
rate differential is determined and the applicable
rate of interest is assessed. One may consult
the Intr B (Interest Buy) column of the Simple
Dealing Rates on the FX Trading Station to determine
what this amount will be.
Funds are deducted in
the opposite circumstance--if the client is short
the currency with the higher interest rate, the
client will pay interest. For short positions,
the client may consult the Intr S (Interest Sell)
column of the FX Trading Station Simple Dealing
Rates. In the No Dealing Desk you can earn positive rolls regardless of your margin level.
Note: On Wednesdays, the amount
added or subtracted to an account as a result
of rolling over a position tends to be around
three times the usual amount. This "3-Day"
rollover accounts for settlement of trades through
the weekend period.
By trading on margin, traders
have the ability control positions much larger
than there deposit. The margin deposit for leverage
is not a down payment on a purchase of equity,
as many perceive margins to be in the stock
markets. Rather, the margin is a performance
bond, or good faith deposit, to ensure against
trading losses.
This is very useful to short-term
day traders who need the enhancement in capital
to generate quick returns. However, leverage
is a double-edged sword. Without proper risk
management, this high degree of leverage can
lead to large losses as well as gains. To help
manage your risk, FXCM offers a unique margin
watcher feature, which is embedded in the platform.
If the equity in your account drops below the
margin required to maintain your open positions,
the dealing desk will close some or all open
positions.
This guarantees limited risk. You
also have the ability to track your margin in
real time. In the accounts window you will see
two columns: used margin and usable margin.
The used margin indicates funds currently pledged
towards open positions. You can think of usable
margin as your "wiggle" room. Once
usable margin reaches zero, a margin call will
ensue and some or all open positions will be
closed by the dealing desk . |
Margin
Details
