Margin Trading

Understand leverage, margin requirements and account risk before opening positions

Leverage and Margin

Trading on Leverage

Forex and CFD products can be traded with leverage, which means a smaller margin deposit can control a larger market position. Leverage can increase exposure to price movement, but it can also increase losses. For example, 30:1 leverage on a major forex pair such as GBP/USD can provide exposure to a larger position while requiring only a fraction of its value as margin.

Maxiweb Digitals Trading Limited applies different leverage levels across tradeable instruments.

30:1

Major currency pairs

20:1

Non-major currency pairs, gold & major indices

10:1

Commodities other than gold & non-major equity indices

2:1

Cryptocurrencies

To review current margin requirements, please click here.

What is Margin?

Margin is the collateral required to open and maintain a leveraged position. It helps cover the risk created when a client trades with borrowed exposure, sells instruments short or enters into derivative contracts.

Maxiweb Digitals Trading Limited accounts use a tiered margin system made up of entry / maintenance margin and liquidation margin.

Entry / Maintenance Margin

The initial collateral set aside to open and maintain a position. On the Trading Station platform, required margin can be viewed in the "MMR" column under "Simple Dealing Rates" or in the "Used Maint Mr" column under "Accounts".

Liquidation Margin (Minimum Required Margin)

Generally 50% of the entry margin. If account equity falls below this level, open positions may be closed automatically.

The Tiered Margin Watcher

Maxiweb Digitals's Tiered Margin Watcher is designed to alert you before margin pressure becomes critical, giving you time to review positions, add funds or reduce exposure where possible.

Do Margin Requirements Change?

Margin requirements can change when volatility, liquidity or exchange rates change. The margin requirement for a currency pair is typically calculated as a percentage of the position's notional value, so a change in the exchange rate can also change the amount of margin required. Maxiweb Digitals Trading Limited may update requirements periodically, and unusual market events can require unscheduled changes.

The Trading Station tiered margin system consists of two components:

Initial Entry / Maintenance Margin — The initial good faith deposit or collateral set aside to open and then maintain a position. The exact amount of margin required to open a position can be viewed in the "MMR" column under the "Simple Dealing Rates" tab on the Trading Station platform or in the "Used Maint Mr" column under the "Accounts" on the Trading Station platform.
Liquidation Margin (Minimum Required Margin) — The minimum amount of equity that must be in the account in order to continue holding the current open positions on the account. This is set at 50% of the value of the Maintenance Margin. If the account equity falls below this level, all positions will be automatically closed. The exact amount of margin required before automatic liquidation will occur can be found in the "Used Mr" column under the "Accounts" tab on the Trading Station platform.

MetaTrader 4 (MT4) Tiered Margin

Similar to Trading Station II accounts, MetaTrader 4 (MT4) accounts use a tiered margin system. MT4 accounts do not use the Smart Margin system, but they do apply Maxiweb Digitals's margin call procedures. Clients can review real-time margin status inside the MT4 platform.

The MT4 platform does not allow Maxiweb Digitals Trading Limited to include commissions in pre-trade margin calculations for pending orders. If available margin is low, order execution and commission charges could trigger a margin call immediately after execution. Clients should keep a usable margin buffer before opening new trades.

The MT4 Tiered Margin system consists of two components:

Entry / Maintenance Margin — The initial good faith deposit or collateral set aside to open and then maintain a position. The exact amount of margin required to open a position can be viewed in the "MMR" column under the "Simple Dealing Rates" tab on the Trading Station platform prior to execution or by viewing the label "Margin" under the "Trade" tab in the MT4 platform.
Liquidation Margin (Minimum Required Margin) — The minimum amount of equity that must be in the account in order to continue holding the current open positions on the account. This is set at 50% of the value of the Maintenance Margin and automatic liquidation will trigger when the "Margin Level" label under the "Trade" tab in the MT4 platform reads "50%" or below.

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