How margins on hedged positions are calculated on XM’s MT4 or MT5 accounts?

When hedging FX positions on XM MT4 or MT5, no margins will be required to your account.

Although for any CFD positions, the 50% of margin required for hedged positions.

FX Hedged Positions = Margin is 0
CFD Hedged Positions = Margin is 50%

Margins on CFD is calculated with the below formula:

Lots * Contract Size * Opening Price * Margin Percentage

Please note that your account Leverage won’t affect the margin on CFD tradings. (CFD margin is not based on the leverage of your trading account.)

Margin can increase on Hedged Positions

Please note that the margin requirement on hedged positions can be increased at anytime, due to spread widening in market prices.

In case you have many or large volume hedged positions, your account can be liquidated(Stop Out) when the spread widens and the margin is increased.

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