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).
Margins for professionals
Professional clients are exempt from regulatory limits on leverage in place for retail clients. This means that if you qualify as a professional client, you won’t have to commit as much of your capital to the initial margin deposit as a retail client would.
For example: if a retail client wanted to take a position on the FTSE 100, a margin of 5% would be required. A professional client, on the other hand, would only need to put down a margin of 0.45%.
You can find out more, and check your eligibility for professional status, on our professional trading page.
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 | DMA2 | 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) + guaranteed stop 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 guaranteed stop 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).
1 Professional clients are exempt from regulatory limits on leverage in place for retail clients, and are able to trade on lower margins as a result. You can find out more, and check your eligibility, on our professional trading page.
2 For professionals only. From 2 July 2018, regulatory interventions mean that certain products are unavailable to retail traders. As a result, we can only offer Forex Direct to professional traders. To find out more about this, and to check whether you are eligible for a professional account, please see our professional trading page.