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Margin And Leverage

The Rules And Requirements

At The LiMarkets, you can pick the leverage rate that suits you, and for certain accounts with leverage ranging from 1:100 to 1:1000*, the sky is the limit! Leverage and Margin Rates are dynamic, responding to factors like your account's equity, holidays, weekends, and economic news, so it's important to take the time to understand how they operate.

The Relationship Between Margin, Leverage And Equity

Calculate the maximum criteria for leverage and margin now by dragging the yellow dot to your current account equity level to display correct margin and maximum levels of Leverage.

Maximum Leverage

1:1000

Maximum Equity

1 000 USD

Margin Requirements

0.05%

Equity, USD Maximum Available Leverage Fixed Margin Requirement, %
      1:1000 1:200
0 – 9 999 1:1000   0.1 0.5
10 000 – 19 999 1:600   0.1 0.5
20 000 – 49 999 1:400   0.1 0.5
50 000 – 199 999 1:200   0.1 0.5
200 000 or more 1:100   0.1 0.5

The use of Leverage & Margin

The use of Leverage & Margin is one of the most attractive factors about forex trading. This helps you to open up and maintain a much larger position with a limited amount of capital. For instance, if you want to open a EURUSD trade worth $100,000, you don't need to have that $100,000 in your account!

What is Leverage?

Technically, leverage is where an investor has a large sum at their disposal by using their own funds substantially less. They borrow the remainder from their broker efficiently.

For instance, suppose you’re trading with a 1:100 leverage and you have $1,000 USD in your account, you’ve got $100,000 available for trading.While this sounds like a crazy good chance, you always have to note that it's a double-edged sword.

You will open up greater positions and potentially earn larger profits when you trade with a larger amount as leverage allows you to do so. However, with bigger positions you also have a higher risk whereby your losses could also be larger.

leverage margin
leverage margin trading

What is Margin?

When you think of the margin as a deposit for the trade you want to open and retain, it may be easier to understand. The broker you trade with will hold a portion of your balance to cover the trade's potential loss. The margin will be returned to your account when you close the position.

Usually, the margin you need for a trade is expressed as a percentage of the overall trade and is called the ' Margin requirement. ' For every trade you open, you will be given a margin requirement which will vary depending on the device you trade with and the broker you choose to trade.

Economic News, Weekends And Holidays

To minimize your risk exposure, margin requirements and leverage may change before the release of Key Economic News Announcements, important holidays, and over the weekend.

News

The margin requirements for new positions opened on affected instruments are determined with a maximum leverage of 1:200 from 15 minutes before reporting high-level economic news until 5 minutes later.

Weekends

Effective Friday at 19:00 GMT (three hours before the forex market closes) until Sunday at 23:00 GMT (two hours after the market opens), the margin requirements for opening new positions will be determined with a maximum leverage of 1:200.

Holidays

A number of important holidays, together with weekends, may also be subject to increased margin requirements. We will publish an update in the LiMarkets News section before making any changes to your leverage.

Want to see some examples of increased margin requirements in action? Click here.

Frequently Asked Questions

Here are our most frequently asked questions about margin requirements and leverage rules. It’s so important that you understand these rules, so please take the time to read through this info-rich section.

Our Cent, Mini and Classic accounts are affected. The margin requirement rule is applied to both real and demo accounts.

Within two hours after market opening (by Sunday 23:00 GMT), the margin on positions opened during the period of increased margin requirements is recalculated based on the amount of funds in the account and the leverage chosen by the client.

Closing a hedged order during the period of increased margin requirements will result in an unhedged position which is treated as a newly opened position. Thus, margin for this position is calculated based on the increased margin requirements and is distributed proportionally between the open transactions that involve the hedged financial instrument.

Margin requirements for the opening of new positions will be calculated on a maximum leverage of 1:200 from Friday at 19:00 GMT (three hours before the forex market closes) to Sunday at 23:00 GMT (two hours after the market opens).

Yes, it will. The daily market break for metals is from 22:00-23:00 GMT. In the thirty minutes leading up to the break (i.e. 21:30-22:00 GMT), your leverage will be limited to a maximum of 1:1000.

When high impact news is released, it can cause significant market volatility and price gaps. As we all know, using high leverage in a highly volatile market is risky as sudden market movements can result in the loss of capital. That’s why we cap leverage at 1:200 during news releases and all newly opened positions on instruments impacted by a release will be subject to increased margin requirements.

In cases when these intervals of increased margin requirements for different news releases are less than 15 minutes apart, these periods may be merged into one long period for the instruments involved. You’ll receive an email from us giving you full details of changes to margin requirements on your trading platform.

When the specified period has passed, the margin on positions opened during the period is recalculated based on the amount of funds in the account and the selected leverage value.

The increased margin rule applies to all trading over the weekend period. All instruments during this period are subject to a maximum leverage of 1:200 (except for cryptocurrencies and US Oil, for which margin requirements are fixed). Holidays are slightly different as only certain instruments and markets may be affected by this rule. We will inform you of any changes to margin requirements and leverage on your platform.

The maximum leverage available for all account types in MetaTrader 5 is 1:2000.

START TRADING with MT5
WebTrader Platform

1

Register

First step is to complete your registration, and for that simply login to your client area and upload the necessary documents.

2

Create an account

Second step you can create a live trading account once the documents that you have uploaded are approved.

3

Make a deposit

Now for the third step deposit amount in your trading account by selecting a proper method of payment.

4

Trade

Now this is your last step, where you are required to Login and start trading just by simply opening MT5 webtrader through the browser

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