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Leverage

For its MT4-Instant and MT4-Market accounts along side the MT5-Instant and MT5-Market accounts, Forex Club International provides its clients with the ability to trade using leverage up to 1:1000. This means that the total nominal value of all open positions at one point in time may exceed the current balance of funds on the Client's trading account, but not more than by 1000 (one thousand) times. The allowed leverage depends on the type of trading account, trading instrument, and the size of the aggregate position in USD.

MT4-Market и MT5-Market

Aggregated position size in USD

Leverage*

Forex Pairs FX Majors

Less than 1 mil.

1000

1 mil. – 3 mil.

500

3 mil. – 5 mil.

200

5 mil. – 10 mil.

100

Over 10 mil.

5

FX RU, FX S. America

Any

40

Other Forex Pairs

Less than 5 mil.

200

5 mil. – 10 mil.

100

10 mil. – 20 mil.

20

Over 20 mil.

5

XAUUSD

Less than 1 mil.

500

1mil. – 7 mil.

200

7 mil. – 14.mil

100

14 mil. – 27 mil.

20

Over 27 mil.

5

XAGUSD

Less than 1 mil.

500

1 mil. – 5 mil.

100

5 mil. – 10 mil.

20

Over 10 mil.

5

CFD on Indices - ES, FDAX, YM, NQ, Z

Less than 0,5 mil.

500

0,5 mil. - 1 mil.

300

1 mil. - 2 mil.

100

2 mil. - 5 mil.

50

5 mil. - 10 mil.

20

Over 10 mil.

10

Other CFD on Indices

Less than 0,3 mil.

200

0,3 mil. - 1 mil.

100

1 mil. - 1.5 mil.

50

1.5 mil. - 5 mil.

25

Over 5 mil.

10

CFD on Energy

Less than 250К.

100

250К – 500К

50

500К - 1 mil.

25

Over 1 mil.

10

CFD on Metals (except XAUUSD & XAGUSD)

Less than 500К

50

500К - 2 mil.

25

2 mil. - 5 mil.

12,5

Over 5 mil.

10

CFD on Stocks

Less than 50К

20

50К – 100К

10

Over 100К

5

 

MT4-Instant и MT5-Instant

Aggregated position size in USD

Leverage*

Forex Pairs FX Majors

Less than 1 mil.

1000

1 mil. – 3 mil.

500

3 mil. – 5 mil.

200

5 mil. – 10 mil.

100

Over 10 mil.

5

Forex Pairs, FX RU, FX S. America

Any

40

Other Forex Pairs

Less than 5 mil.

200

5 mil. – 10 mil.

100

Over 10 mil.

5

XAUUSD

Less than 1 mil.

500

1mil. – 7 mil.

200

7 mil. – 14.mil.

100

14 mil. – 27 mil.

20

Over 27 mil.

5

XAGUSD

Less than 1 mil.

500

1 mil. – 5 mil.

100

5 mil. – 10 mil.

20

Over 10 mil.

5

CFD on Indices - ES, FDAX, YM, NQ, Z

Less than 0,5 mil.

500

0,5 mil. - 1 mil.

300

1 mil. - 2 mil.

100

2 mil. - 5 mil.

50

5 mil. - 10 mil.

20

Over 10 mil.

10

Other CFD on Indices

Less than 0,3 mil.

200

0,3 mil. - 1 mil.

100

1 mil. - 1.5 mil.

50

1.5 mil. - 5 mil.

25

Over 5 mil.

10

CFD on Energy

Less than 250К

100

250К – 500К

50

500К - 1 mil.

25

Over 1 mil.

10

CFD on Metals (except XAUUSD & XAGUSD)

Less than 500К

50

500К - 2 mil.

25

2 mil. - 5 mil.

12,5

Over 5 mil.

10

CFD on Stocks

Less than 50К

20

50К – 100К

10

Over 100К

5

An example of calculating the margin with a floating leverage on an MT4-Instant account.

Consider the following example with floating leverage:

  1. Opening position # 1: Buy 5 lots of GBPUSD at a price of 1.5860 (Position # 1)
    The nominal value is 5 * 100,000 * 1.5860 = 793,000 USD
    Since the nominal value of 793,000 USD does not exceed 1,000,000 USD, the margin requirements (collateral/margin) are calculated with a leverage of 1: 1000, i.e. margin is: 793,000 / 1,000 = 793 USD.
  2. Buy 40 lots of EURUSD at 1.3694.
    The nominal value is: 40 * 100,000 * 1.3694 = 5,477,600 USD.
    Aggregate nominal value for positions # 1 and # 2:
    793,000 (item # 1) + 5 477 600 (item # 2) = 6 270 600 USD
    Now that the aggregated nominal value of two open positions exceeds 5,000,000 USD, the aggregate margin is calculated differently: for the first 1,000,000 USD, a leverage of 1: 1000 is taken into account, for the next 2,000,000 USD the leverage will be 1: 500, for the next 2,000,000 USD 1: 200, and for the remainder 1: 100.
    Thus, the margin will be (1,000,000 / 1,000) + (2,000,000 / 500) + (2,000,000 / 200) + (1,270,600 / 100) = 1,000 + 4,000 + 10,000 + 12706 = 27,706 USD.
  3. Closing position No. 2, for which the nominal value is 5,477,600 USD.
    After the close, the aggregate nominal value again becomes 793,000 USD, respectively, the leverage for the remaining position will be 1 : 1000, and the margin will be equal to 793 USD.

* Every Friday, 1 hour before the close of the trading session, for all open and newly opened positions for currency pairs, the maximum leverage will be lowered to the second level; so for FX Majors it will be lowered from 1:1000, to 1:500; for CFD on Energy it will be lowered from 1:100 to 1:50. For all CFD instruments, except for CFDs on Stocks, the maximum leverage is halved 1 hour before the close of the trading session. For stock CFDs, the leverage does not change for a given time period Also, the Company reserves the right to reduce the leverage provided to the Client before weekends and holidays.