FxFWay

Specifications

Read the information below regarding order execution and leverage on each of our 4 main trading platforms. Please note that, for clients of FxFWay Financial Services Limited, the default leverage offered during the account opening process is set at 1:50. The maximum leverage offered to any client depends on their level of experience in trading CFDs. This is assessed during the registration process.

For the purpose of margin calculation, please note that the lowest between the account leverage and the symbol leverage will prevail.

Forex Leverage

FxFWay uses a dynamic forex leverage model on the MT4 and MT5 platforms, which automatically adapts to clients trading positions. As the volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

This is done per trading instrument, so if a client has positions open across multiple instruments, the leverage will be calculated separately on each forex symbol. For example, if a trader has 300 lots Buy on USDJPY, and then starts trading EURUSD, his/her margin requirement for EURUSD, will not be affected by the existing USDJPY positions.

The sum of the positions is calculated in the following way. Consider a trader has 300 lots Buy and 200 Lots Sell. To calculate the required margin, one would take the side with the largest volume (sum). In this example, the side with the largest exposure is the 300 Buy, and as such, 300 would be the value used in calculating the required margin. Furthermore, a trader with 6 positions of 50 lots Buy (or Sell), and a trader of a single position of 300 lots Buy (or Sell), would require the same margin; given their accounts have identical leverage settings.

Open LotsMaximum Leverage
0-100Max 1:500
100-200Max 1:200
200-300Max 1:100
300-500Max 1:50
500+Max 1:33

Please note, that if the account leverage is less than the value table provided, then the account leverage will be considered instead.

Example 1
Client Account Leverage – 1:50

Consider a USD account with 200 Buy (or Sell) lots USDJPY
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMaximum 
Leverage
Applicable 
Leverage
Margin
0-1001:5001:50100 (lots) * 100,000 / 50 (leverage) = 200,000 USD
100-2001:2001:50100 (lots) * 100,000 / 50 (leverage) = 200,000 USD
200-3001:1001:50
Total Required Margin: 400,000 USD

Utilised Leverage is 1:50 


Example 2
Client Account Leverage – 1:100

Consider a GBP account with 250 Buy (or Sell) lots GBPUSD
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below

LotsMaximum 
Leverage
Applicable 
Leverage
Margin
0-1001:5001:100100 (lots) * 100,000 / 100 (leverage) = 100,000 GBP
100-2001:2001:100100 (lots) * 100,000 / 100 (leverage) = 100,000 GBP
200-3001:1001:10050 (lots) * 100,000 / 100 (leverage) = 50,000 GBP
Total Required Margin: 250,000 GBP

Utilised Leverage is 1:100 


Example 3
Client Account Leverage – 1:500

Consider a EUR account with 300 Buy (or Sell) lots EURUSD 
In this example, the account leverage is greater than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below

LotsMaximum 
Leverage
Applicable 
Leverage
Margin
0-1001:5001:500100 (lots) * 100,000 / 500 (leverage) = 20,000 EUR
100-2001:2001:200100 (lots) * 100,000 / 200 (leverage) = 50,000 EUR
200-3001:1001:100100 (lots) * 100,000 / 100 (leverage) = 100,000 EUR
Total Required Margin: 170,000 EUR

Utilised Leverage is 1:176.47 


Metals Margin Requirements

FxFWay uses a dynamic leverage model on the MT4, MT5, cTrader and FxFWay Markets platforms for trading precious metals, which automatically adapts to clients' trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

Again, this is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each symbol. For example, if a trader has a position in Silver and then starts trading Gold, his/her margin requirement for Gold will not be affected by the existing Silver positions.

SymbolsOpen 
Lots
Margin 
Requirement
Maximum
Leverage
GOLD, GOLDEURO, SILVER, SILVEREURO0-500.50%1:200
>501%1:100
GOLDoz0-5,0000.5%1:200
>5,0001%1:100
GOLDgr0-155,5000.5%1:200
>155,5001%1:100
Example 1 Metals

Client Account Leverage – 1:50 
Consider a USD account with 10 Buy (or Sell) lot of Gold at spot price of 1,250 USD
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin 
Requirement
Applicable 
Margin 
Requirement 
MarginMargin USD
100.50%2%2% (margin req.) * 100 (oz) * 10 (lots) * 1,250 (price of gold spot)$25,000.00
Total Margin Required = $25,000.00

Utilised Leverage is 1:50 


Example 2 Metals

Client Account Leverage – 1:100 
Consider a USD account with 100 Buy (or Sell) lot of Gold at spot price of 1,250 USD
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin 
Requirement
Applicable 
Margin 
Requirement 
MarginMargin USD
500.50%1%1% (margin req.) * 100 (oz) * 50 (lots) * 1,250 (price of gold spot)$62,500.00
501.00%1%1% (margin req.) * 100 (oz) * 50 (lots) * 1,250 (price of gold spot)$62,500.00
Total Margin Required = $125,000

Utilised Leverage is 1:100 


Example 3 Metals

Client Account Leverage – 1:500 
Consider a USD account with 150 Buy (or Sell) lot of Gold at spot price of 1,250 USD
In this example, the account leverage is greater than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin 
Requirement
Applicable 
Margin 
Requirement 
MarginMargin USD
500.50%0.50%0.50% (margin req.) * 100 (oz) * 50 (lots) * 1,250 (price of gold spot)$31,250.00
1001.00%1.00%1.00% (margin req.) * 100 (oz) * 100 (lots) * 1,250 (price of gold spot)$125,000.00
Total Margin Required = $156,250.00

Utilised Leverage is 1:120 


Futures Margin Requirements

FxFWay uses a dynamic leverage model on the MT4 and MT5 platforms for trading futures, which automatically adapts to clients' trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

Open 
Lots
Margin 
Requirement
Maximum 
Leverage
0-502%1:50
50-1004%1:50
100-15010%1:10
150-30016%1:6.25
>30020%1:2
Example 1 Futures

Client Account Leverage – 1:50 
Consider a USD account with 10 Buy (or Sell) lots of Dow Jones Future at 20,000 
In this example, the account leverage equals the symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin 
Requirement
Applicable 
Margin 
Requirement 
MarginMargin USD
102%2%10(Lots) *5($) *20,000 (Opening Price) * 2%(margin req.)$20,000.00
Total Margin Required = $20,000.00

Utilised Leverage is 1:50 


Example 2 Futures

Client Account Leverage – 1:100 
Consider a EUR account with 100 Buy (or Sell) lots of DAX Future at 12,000 
In this example, the account leverage is greater than the symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin 
Requirement
Applicable 
Margin 
Requirement 
MarginMargin USD
502%2%50(Lots) *25(EUR) *12,000 (Opening Price) * 2%(margin req.)300,000 EUR
504%4%50(Lots) *25(EUR) *12,000 (Opening Price) * 4%(margin req.)600,000 EUR
Total Margin Required = 900,000 EUR

Utilised Leverage is 1:33.33 


Example 3 Futures

Client Account Leverage – 1:500 
Consider a USD account with 150 Buy (or Sell) lots of Nikkei225 Future at 18,500 
In this example, the account leverage is greater than the symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin 
Requirement
Applicable 
Margin 
Requirement 
MarginMargin USD
502%2%50(Lots) *5($) *18,500 (Opening Price) * 2%(margin req.)$92,500
504%4%50(Lots) *5($) *18,500 (Opening Price) * 4%(margin req.)$185,000
5010%10%50(Lots) *5($) *18,500 (Opening Price) * 10%(margin req.)$462,500
Total Margin Required = $740,000

Utilised Leverage is 1:18.75 


Energy Futures / Spot Margin Requirements

FxFWay uses a dynamic leverage model for trading future energies, which automatically adapts to clients' trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

Open LotsMargin 
Requirement
0-201.00%
20-1002.50%
>1005.00%
Example 1 Future Energies

Client Account Leverage – 1:50 
Consider a USD account with 20 Buy (or Sell) lots of US Light Sweet Crude Oil at 53.15
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin RequirementApplicable 
Margin 
Requirement
Opening PriceMargin
201%2%20(Lots) *1000 (Contract Size) * 53.15 (Opening Price) * 2%(margin req.)$21,260.00
Total Margin Required = $21,260.00

Utilised Leverage is 1:50 


Example 2 Future Energies

Client Account Leverage – 1:100 
Consider a USD account with 50 Buy (or Sell) lots of Brent Oil at 55.75
In this example, the account leverage is greater than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin RequirementApplicable 
Margin 
Requirement
Opening PriceMargin
201%1%20(Lots) *1000 (Contract Size) * 55.75 (Opening Price) * 1%(margin req.)$11,150.00
302.5%2.50%30(Lots) *1000 (Contract Size) * 55.75 (Opening Price) * 2.50%(margin req.)$41,812.50
Total Margin Required = $52,962.50

Utilised Leverage is 1:52.63 


Example 3 Future Energies

Client Account Leverage – 1:500 
Consider a USD account with 150 Buy (or Sell) lots of Natural Gas at 3.285
In this example, the account leverage is greater than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

LotsMargin RequirementApplicable 
Margin 
Requirement
Opening PriceMargin
201%1%20(Lots) *10000 (Contract Size) * 3.285 (Opening Price) * 1%(margin req.)$6,570.00
802.5%2.5%80(Lots) *10000 (Contract Size) * 3.285 (Opening Price) * 2.5%(margin req.)$65,700.00
505%5.00%50(Lots) *10000 (Contract Size) * 3.285 (Opening Price) * 5%(margin req.)$82,125.00
Total Margin Required = $154,395.00

Utilised Leverage is 1:31.91 


Indices Margin Requirements

FxFWay uses a dynamic leverage model for indices, which automatically adapts to clients' trading positions. As the amount of indices of a client increases, the leverage offered decreases accordingly; as per the following table.

Please note, on the cTrader and FxFWay Markets platforms, dynamic leverage is not applicable for indices.

Margin Requirement0.20%0.50%0.80%1.00%1.50%2%4%10%16%20% (for greater than)
US30, AUS200, Swiss20, UK100, USNDAQ100, Germany30, USSPX500, Italy40, US20002525-501003007501,0001,2503,500
Japan225, Finland25, Spain35, Holland25, Sweden30, Euro50, France40-2525501003007501,0001,2503,500
France120, HongKong50, Nordic40, Polland20, UKMid250, Denmark20, Belgium20, Germany50, GerTech30, Canada60, India50, SAfrica40--50501003007501,0001,2503,500
ChinaHShar---1001003007501,0001,2503,500
ChinaA50, Greece25, Hungary12-----5007501,0001,2503,500
Example 1 Indices

Client Account Leverage – 1:50 
Consider a USD account with 280 Lots of #US30 at 20,000. 
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

UnitsSize RangeMargin 
Requirement
Applicable Margin 
Req.
Margin (Units*Margin 
Required*Opening Price)
MarginMargin CCY
250-250.2%2%25*2%*20,00010,000USD
2526-500.5%2%25*2%*20,00010,000USD
5051-1001.0%2%50*2%*20,00020,000USD
100101-2001.5%2%100*2%*20,00040,000USD
80201-5002.0%2%80*2%*20,00032,000USD
Total Margin Required = $112,000

Utilised Leverage is 1:50 


Example 2 Indices

Client Account Leverage – 1:100 
Consider a EUR account with 250 Lots of #France120 at 4,000. 
In this example, the account leverage is less than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

UnitsSize RangeMargin 
Requirement
Applicable Margin 
Req.
Margin (Units*Margin 
Required*Opening Price)
MarginMargin CCY
500-500.75%1%50*1%*4,0002,000EUR
5051-1001%1%50*1%*4,0002,000EUR
100101-2001.5%1.5%100*1.5%*4,0006,000EUR
50201-2502%2%50*2%*4,0004,000EUR
Total Margin Required = 14,000 EUR

Utilised Leverage is 1:71.43 


Example 3 Indices

Client Account Leverage – 1:500 
Consider a GBP account with 550 Lots of #UK100 at 7,300. 
In this example, the account leverage is greater than symbols’ relevant values in the Leverage Monitor table, so the margin required would be as below:

UnitsSize RangeMargin 
Requirement
Applicable Margin 
Req.
Margin (Units*Margin 
Required*Opening Price)
MarginMargin CCY
250-250.2%0.2%25*0.2%*7,300365.00GBP
2526-500.5%0.5%25*0.5%*7,300912.50GBP
5051-1001.0%1%50*1%*7,3003,650.00GBP
100101-2001.5%1.5%100*1.5%*7,30010,950.00GBP
300201-5002.0%2%300*2%*7,30043,800.00GBP
50501-5504.0%4%50*4%*7,30014,600.00GBP
Total Margin Required = 74,277.50 GBP

Utilised Leverage is 1:54.05 


Shares Margin Requirements

As in forex trading, FxFWay uses a dynamic leverage model for trading shares, which automatically adapts to clients' trading positions. As the amount of shares of a client increases, the maximum leverage offered decreases accordingly; as per the following table.

Please note that margin requirements for shares may be increased 5 business days prior to an upcoming company earnings report and/or corporate and/or other action.

Margin Requirement4.00 %8.00 %15.00 %60.00 %
French Shares< 20,000< 100,000< 800,000800,000+
German Shares< 20,000< 100,000< 500,000500,000+
UK Shares< 2,000< 10,000< 50,00050,000+
US Shares *< 20,000< 100,000< 500,000500,000+

* #Apple share has the following tiers:

Margin Requirement4 %12 %20 %30 %60 %
#Apple< 1000< 1800< 2600< 34003400+
Example 1 French Shares

Consider a EUR account with 19,000 Buy (or Sell) AirFrance Shares (French Shares)

No. of SharesMargin RequirementOpening PriceMargin
19,0004.0%7.019,000(Shares) * 7.0 (Opening Price) * 4.0%(margin req.) = 5320 EUR
Example 2 German Shares

Consider a EUR account with 130,000 Buy (or Sell) Adidas Shares (German Shares)

No. of SharesMargin RequirementOpening PriceMargin
20,0004.0%82.0520,000 (Shares) * 82.05 (Opening Price) * 4.0%(margin req.)= 65,640.00 EUR
20,000-100,0008.0%82.0580,000 (Shares) * 82.05 (Opening Price) * 8.0%(margin req.)= 525,120.00 EUR
100,000-130,00015.00%82.0530,000 (Shares) * 82.05 (Opening Price) * 15%(margin req.)= 369,225.00 EUR
Total Margin Required = 959,985.00 EUR
Example 3 UK Shares

Consider a EUR account with 55,000 Buy (or Sell) Tesco Shares (UK Shares)

No. of SharesMargin RequirementOpening PriceMargin
2,0004.0%1.82,000 (Shares) * 1.8 (Opening Price) * 4.0% (margin req.) = 144.00 GBP
2,000-10,0008.0%1.88,000 (Shares) * 1.8 (Opening Price) * 8.0% (margin req.) = 1,152.00 GBP
10,000-50,00015.00%1.840,000 (Shares) * 1.8 (Opening Price) * 15% (margin req.) = 10,800.00 GBP
50,000-55,00060.00%1.85,000 (Shares) * 1.8 (Opening Price) * 60% (margin req.) = 5,400.00 GBP
Total Margin Required: 17,496 GBP / 0.7 (EURGBP rate) = 24,994 EUR
Example 4 US Shares

Consider a EUR account with 90,000 Buy (or Sell) Apple Shares (US Shares)

No. of SharesMargin RequirementOpening PriceMargin
20,0004.0%12220,000 (Shares) * 122 (Opening Price) * 4.0% (margin req.)= 97,600.00 USD
20,000-90,0008.0%12270,000 (Shares) * 122 (Opening Price) * 8.0% (margin req.)= 683,200.00 USD
Total Margin Required: 780,800 USD / 1.4 (EURUSD rate) = 557,714 EUR




Copyright 2017 (c) FxFway.com All Right Reserve