Forex Leverage in FxPro Broker
FxPro uses a dynamic forex leverage model, which automatically adapts to clients trading positions. As the volume, per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the table below. The following leverage structure applies to MT4 forex trading only.
| Open Lots | Maximum Leverage |
|---|---|
| 0-100 | Max 1:500* |
| >100-200 | Max 1:200* |
| >200-300 | Max 1:100* |
| >300-500 | Max 1:50* |
| 500+ | Max 1:33* |
| * or trader leverage, whichever is less | |
This is done per trading instrument, so if a client has positions open across multiple instruments, the leverage will be calculated separately on each forex symbol. For example, if a trader has 300 lots Buy on USDJPY, and then starts trading EURUSD, his/her margin requirement for EURUSD, will not be affected by the existing USDJPY positions.
The sum of the positions is calculated in the following way. Consider a trader has 300 lots Buy and 200 Lots Sell. To calculate the required margin, one would take the side with the largest volume (sum). In this example, the side with the largest exposure is the 300 Buy, and as such, 300 would be the value used in calculating the required margin. Furthermore, a trader with six (6) positions of 50 lots Buy (or Sell), and a trader of a single position of 300 lots Buy (or Sell), would require the same margin; given their accounts have identical leverage settings.
Please note, that if the account leverage is less than the value table provided, then the account leverage will be considered instead.
Example 1:
Client Account Leverage – 1:100
Consider a USD account with 300 Buy lots USDJPY.
In this example, the account leverage is less than or equal to all relevant values in the Leverage Monitor table, so the margin required would be unaffected.
| Lots | Maximum Leverage | Applicable Leverage | Margin |
|---|---|---|---|
| 0-100 | 1:500 | 1:100 | 100 (lots) * 100,000 100 (leverage) = 100,000 USD (margin) |
| 100-200 | 1:200 | 1:100 | 100 (lots) * 100,000 100 (leverage) = 100,000 USD (margin) |
| 200-300 | 1:100 | 1:100 | 100 (lots) * 100,000 100 (leverage) = 100,000 USD (margin) |
| Total Required Margin: 300,000 USD | |||
Example 2:
Account Leverage – 1:500
Consider a USD account with 250 Buy lots USDJPY.
In this example, the account leverage is more than or equal to values in the Leverage Monitor table, so the margin required would be calculated as follows:
| Lots | Maximum Leverage | Applicable Leverage | Margin |
|---|---|---|---|
| 0-100 | 1:500 | 1:500 | 100 (lots) * 100,000 500 (leverage) = 20,000 USD (margin) |
| 100-200 | 1:200 | 1:200 | 100 (lots) * 100,000 200 (leverage) = 50,000 USD (margin) |
| 200-300 | 1:100 | 1:100 | 50 (lots) * 100,000 100 (leverage) = 50,000 USD (margin) |
| Total Required Margin: 120,000 USD | |||
Example 3:
Now consider that the same trader also opens a position of 300 Lots EURUSD Buy (or Sell); with the EURUSD rate at 1.40000.
| Lots | Maximum Leverage | Applicable Leverage | Margin |
|---|---|---|---|
| 0-100 | 1:500 | 1:500 | 100 (lots) * 100,000 500 (leverage) = 20,000 EUR (margin) |
| 100-200 | 1:200 | 1:200 | 100 (lots) * 100,000 200 (leverage) = 50,000 EUR(margin) |
| 200-300 | 1:100 | 1:100 | 100 (lots) * 100,000 100 (leverage) = 100,000 EUR(margin) |
| Total Required Margin: 170,000 EUR * 1.4 (rate) = 238,000 USD | |||
So the trader would require 120,000 USD margin for USDJPY and 238,000 USD margin for EURUSD, thus giving a total margin of 358,000 USD for both positions.