LEVERAGE AND MARGIN

What are the leverages provided?

When you first create your MT5 account, one of the fields you are required to fill up is the leverage. We have the following range of leverages for you to choose from:

Range of Leverages Margin Percentage
1:25 4 %
1:50 2 %
1:75 1.33 %
1:100 1 %
1:150 0.67 %
1:200 0.5 %

What is Margin?

  • Margin trading gives you the full exposure of a market using only a fraction of the capital you’d normally need.
  • Margin is the amount of money you need to open a position, defined by your leverage selected on account opening. The table below shows you the leverages we offer, and the percentage of margin needed for a trade.
  • There are 2 types of margins you’ll need to consider:

Initial Margin

The initial margin is the minimum amount you’ll need to put up to open a position. It is also sometimes called the deposit margin, or just the deposit.

Maintenance Margin

The maintenance margin is the extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough funds in your account to cover the present value of the position at all times – covering any running losses.

Margin at The CorefxLiquidity

At the CorefxLiquidity, we offer a competitive range of leverage and margins across our full range of markets. Upon account opening, you will be prompted to select the leverage you’d like to trade on. Do bear in mind that the higher the leverage, the greater your profits and losses (and ultimately risk) will be magnified. Select the leverage that is best suited for your risk appetite.

How are margins for your positions calculated?

  • At the CorefxLiquidity, we offer a range of competitive range of margins across our full range of markets.
  • Let's use the following as an example:
  • You are looking to short 6 standard contracts of EUR/USD at a bid price of 1.23680, with a margin percentage of 2%.
    To calculate margin requirements for a position, we use the following formula:
  • No. of contracts * No. of pips * Value per pip * Margin Percentage
  • 6 standard contracts * 12368 pips * USD 10/pip * 2% Margin = USD 14,481.60
  • Let's now use an example for Indices.
    You are looking to buy 5 standard contracts of the Germany 30 Index at an Ask price of 13303.2, with a margin percentage of 1%.
    The margin calculations are as follows:
  • No. of contracts * No. of points * Value per point * Margin Percentage
  • 5 standard contracts * 13303.2 points * EUR 25/point * 1% Margin = EUR 16,629 = ~USD 20,606.8
  • As your base currency for your account is in USD, any non-USD denominated transactions will be converted to USD based on the prevailing spot rate.

Things to Remember

  • Always ensure you have enough funds in your account to cover both margins and losses
  • Your MT5 account is margined independently. Funds in one account will not cover the margin requirements or losses in another.

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2085, Kingstown

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+971521889519

Risk Disclosure: Due to the high risk of losing money, trading leveraged products like Forex and derivatives may not be suitable for all investors. Please ensure that you fully understand the risks involved before trading, taking into account your investment goals and level of experience, and obtain professional advice if necessary.

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