Margin and Leverage

Unique Leverage Up to 1000:1

Flexible leverage between 1:1 – 1000:1

Negative balance protection

Real-time risk exposure monitoring

No changes in margin overnight or at weekends

About Margin

Margin is the collateral required to cover the credit risks during your trading operations. It is typically expressed as a percentage of the total position size (e.g., 5% or 1%). The primary reason for having funds in your trading account is to ensure that sufficient margin is available for opening and maintaining positions.

For instance, with a 1% margin requirement, if you are trading a position of $1,000,000, you will need to deposit $10,000 to cover that position.

Margin Requirements for Forex, Gold, and Silver
When trading Forex, Gold, or Silver, new positions can be opened as long as the margin requirement for the new position is equal to or less than the free margin available in the account. In the case of hedging, positions can be opened even if the margin level falls below 100%, as the margin requirement for hedged positions is zero.

Margin Requirements for Other Instruments
For all other instruments, new positions can be opened if the margin requirement for the new positions is equal to or less than the free margin available in the account. However, when hedging with other instruments, the margin requirement for the hedged position is 50%. New hedged positions can only be opened if the total margin requirements are equal to or less than the total equity in the account.

Dynamic Margin for Cryptocurrencies

At Austin Pips, leverage on Cryptocurrency CFDs is dynamic and automatically adjusts based on the volume traded for each instrument. This means that as the trade volume increases for each instrument, the margin percentage will rise in line with the dynamic leverage value for that specific instrument.

Margin Calculation per Instrument
It’s crucial to understand that margin is calculated separately for each instrument you trade. If you have open positions across multiple instruments, the margin requirements are assessed individually for each one.

The following examples illustrate how dynamic margin works. Please note that the values presented are for illustrative purposes only and should not be used for making real trading decisions or calculations.