Margin is the amount of funds required in your account to open and maintain a trading position. It acts as collateral against potential losses and depends on the instrument, position size, and leverage applied.
Margin requirements are directly linked to leverage, as margin is the reciprocal of leverage. For example:
- 100x leverage = 1/100 = 1% margin requirement
Leverage on the platform is dynamic and adjusts based on your total market exposure. For instance, on XAUUSD (Gold):
- Up to $1,000,000 exposure may qualify for 500x leverage (0.2% margin requirement)
Beyond $1,000,000 exposure, leverage may reduce to 200x (0.5% margin requirement), increasing the required margin accordingly