Losses can exceed deposits
We offer a tiered margining system, enabling us to offer competitive rates and keep your costs down. The margin simply represents a percentage of the value of your position. As such, the smaller your position, the lower the margin you will have to put up. With stops, you can also limit your potential losses and reduce your margin requirement.
Open a trade by paying only a fraction of the value of your position with leveraged FX products.
Margin is the amount of money you need to open a position.
For our forex markets, the margin we require from you is charged at a percentage of the value of the trade, or the margin rate. You can find these percentages in our tiered margin lists, in the ‘margin requirements’ section below.
Smaller deals have our lowest margin rates, as defined by our tiered margin levels. You may be able to further lower the deposit incurred on your position by attaching a stop to it.
We cap margin requirements with non-guaranteed stops at the amount of margin applied where no stop is present (i.e. you will never incur more margin for a position with a stop than you would if you used no stop at all).
The table below shows the tier one margin requirements for some of our most popular markets.
See margins for individual markets in: CFD | Spread betting | DMA | MT4
Bet size x price x margin percentage
E.g. £5 GBP/USD:
£5 x 15347.0 x 0.25% = £191.84 margin
(Deposit requirement for no stop x slippage factor %) + (bet size x stop distance from current level)
E.g. £5/pt GBP/USD with a non-guaranteed stop 20 points away:
(£191.84 x 20%) + (£5 x 20) = £138.37 margin
The larger figure of the two calculations below:
1. Bet size x stop distance (in points) + limited risk premium
2. Bet size x price x margin percentage
E.g. £5/point GBP/USD with a guaranteed stop 20 points away and 1-point limited risk premium.
Calculation 1: (£5 x 20) + (£5 x 1) = £105 margin
Calculation 2: £5 x 15500 x 0.5% = £387.50 margin
So margin requirement is £387.50 (the larger figure of the two).