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MetaTrader 4 Margin Requirement (FX)

Margin Requirement Trading Leverage
1% 100:1
Note: We ask that you consider the risks associated with increasing your leverage. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit, this may work against you as well as for you. You may sustain a total loss of initial margin and you may be required to deposit additional funds to cover a short margin position. Learn more about margin trading risks.

Calculate Required Margin

Margin required is affected by changes in the market rate. For non-dollar based currency pairs the margin required will be converted into U.S. Dollars at the prevailing market price for that pair. For example, the margin required to place a trade of GBP 100,000 should not be, and is not, the same as the margin needed for a trade of US$100,000.

Example #1 (U.S. Dollar based currency pair):

A client places a trade to buy USD/JPY 100,000 at 125.00, with USD/JPY trading at 124.97 / 125.00. Leverage selected on the account is 100:1.

The required margin = USD100,000(base currency) / 100 = $1,000 USD.

Formula for U.S. Dollar based currency pair:
Required margin = contract size (base currency) / leverage

Example #2 (Non U.S. Dollar based currency pair):

A client places a trade to buy EUR/USD 100,000 at 1.3200, with EUR/USD trading at 1.3197 / 1.3200. Leverage selected on the account is 100:1.

The required margin = EUR100,000(base currency) / 100 x 1.3200 = $1,3200 USD.

Formula for Non U.S. Dollar based currency pair:
Required margin = contract size (base currency) / leverage x bid or ask


 




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*Precious metals, energies, CFD contracts and the ability to earn interest on cash balances are available to MadaFX's MetaTrader 4 platform clients only.
†Forex (FX) trading on margin carries a high level of risk and is not suitable for all investors. Forex is traded with a high degree of leverage, which can work for you as well as against you, and it is possible to loss more than you invest. You should only invest funds that you can afford to lose and do not need to support yourself or your family. You should carefully consider all risks involved with forex trading as well as your financial situation, investment objectives, and risk tolerance before investing. Forex is traded over-the-counter (OTC) and not on a regulated Exchange. Market conditions may adversely affect order execution.

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