Futures And Metals Margin Requirements In FxPro

Metals Margin Requirements

As in forex trading, FxPro uses a dynamic leverage model for trading precious metals and futures, which automatically adapts to clients, trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the table below.

Open Lots Margin Requirement Maximum Leverage
0-1 0.5% 1:200
>1-2 1% 1:100
>2-50 2% 1:50
>50-100 4% 1:25
>100-150 6% 1:16.67
>150-300 10% 1:10
>300 20% 1:5

Again, this is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each symbol. For example, if a trader has a position in Silver and then starts trading Gold, his/her margin requirement for Gold will not be affected by the existing Silver positions.

Example 1 Metals

Consider a USD account with 1 Buy (or Sell) lot of Gold at spot price of 1.500 USD.

Lots Margin Requirement Margin Calculation Margin USD
1 0.5% 0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) $750.00
1 Total Margin Required (1 Lot Gold) $750.00

Example 2 Metals

Consider a USD account with 50 Buy (or Sell) lots of Gold at spot price of 1.500 USD.

Lots Margin Requirement Margin Margin USD
1 0.5% 0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) $750.00
1 1% 1%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) $1,500.00
48 2% 2%(margin req.) * 100(oz) * 48(lots) * 1500(price of gold spot) $144,000.00
50 Total Margin Required (50 Lots Gold) $146,250.00

Example 3 Metals

Consider a USD account with 150 Buy (or Sell) lots of Gold at spot price of 1.500 USD.

Lots Margin Requirement Margin Margin USD
1 0.5% 0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) $750.00
1 1% 1%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) $1,500.00
48 2% 2%(margin req.) * 100(oz) * 48(lots) * 1500(price of gold spot) $144,000.00
50 4% 4%(margin req.) * 100(oz) * 50(lots) * 1500(price of gold spot) $300,000.00
50 6% 6%(margin req.) * 100(oz) * 50(lots) * 1500(price of gold spot) $450,000.00
150 Total Margin Required (150 Lots Gold) $896,250.00

Futures Margin Requirements

Open Lots Margin Requirement
0-50 Standard Margin Per Instrument
>50-100 Margin*2
>100-150 Margin*5
>150-300 Margin*8
>300 Margin*10

Example 1 Futures

Consider a USD account with 10 Buy (or Sell) lots of Dow Jones Futures

Lots Margin Per 1 Lot Margin
10 $1000 10(Lots) * $1,000(margin per lot) = 10,000 USD

Example 2 Futures

Consider a USD account with 250 Lots of Nasdaq Futures

Lots Margin Per 1 Lot Margin
50 $500 50(Lots)*$500(margin per lot)= 25,000 USD
50-100 $500*2 50(Lots)*$ 500(margin per lot)*2(margin multiplier)= 50,000 USD
100-150 $500*5 50(Lots)*$500(margin per lot)*5(margin multiplier)= 125,000 USD
150-250 $500*8 100(Lots)*$500(margin per lot)*8(margin multiplier)= 400,000 USD
Total Margin Required = 600,000 USD

Example 3 Futures

Consider a USD account with 50 Buy lots of Nasdaq Futures, and wants to trade 250 Sell lots of Nasdaq Futures ; Margin required will be computed on the 250 Sell lots, i.e. Total Margin Required = 600,000 USD.

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