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 LotsMargin RequirementMaximum Leverage
0-10.5%1:200
>1-21%1:100
>2-502%1:50
>50-1004%1:25
>100-1506%1:16.67
>150-30010%1:10
>30020%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.

LotsMargin RequirementMargin CalculationMargin USD
10.5%0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot)$750.00
1Total 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.

LotsMargin RequirementMarginMargin USD
10.5%0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot)$750.00
11%1%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot)$1,500.00
482%2%(margin req.) * 100(oz) * 48(lots) * 1500(price of gold spot)$144,000.00
50Total 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.

LotsMargin RequirementMarginMargin USD
10.5%0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot)$750.00
11%1%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot)$1,500.00
482%2%(margin req.) * 100(oz) * 48(lots) * 1500(price of gold spot)$144,000.00
504%4%(margin req.) * 100(oz) * 50(lots) * 1500(price of gold spot)$300,000.00
506%6%(margin req.) * 100(oz) * 50(lots) * 1500(price of gold spot)$450,000.00
150Total Margin Required (150 Lots Gold)$896,250.00

Futures Margin Requirements

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

Example 1 Futures

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

LotsMargin Per 1 LotMargin
10$100010(Lots) * $1,000(margin per lot) = 10,000 USD

Example 2 Futures

Consider a USD account with 250 Lots of Nasdaq Futures

LotsMargin Per 1 LotMargin
50$50050(Lots)*$500(margin per lot)= 25,000 USD
50-100$500*250(Lots)*$ 500(margin per lot)*2(margin multiplier)= 50,000 USD
100-150$500*550(Lots)*$500(margin per lot)*5(margin multiplier)= 125,000 USD
150-250$500*8100(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.