XM to apply changes to Margin Calculation of CFDs in MT4

July 29, 2016

Important notification regarding to the calculation of margins of CFD.

XM to apply changes to Margin Calculation of CFDs in MT4

Please note that XM is going to apply “Dynamic Leverage” to CFD contracts from August 1st in 2016.

As of the day mentioned above, the leverage(Margin Requirement) for trading of CFDs are not fixed according to trading volumes, but variable according to “Margin Level” in the account.

The calculation will be changed as follows:

Margin Calculation before = the number of lots * Fixed Margin

Updated Margin Calculation = the number of lots * Contract Size * Open Price * Margin Level

You are recommended to have enough equity to support your open positions at anytime.

e.g. Energies Futures

If buying(or selling) 10 lots of NGAS in USD account.

Number of Lots Required Margin Open Price Margin Requirement
Before 10 130 2.65 10 (lots) * 130 (Required Margin) = 1,300 USD
From August 1st 10 3% 2.65 10 (lots) * 1000 (Contract Size) * 2.65 (Open Price) * 3% (Required Margin) = 795 USD

e.g. Index CFD Future

If buying(or selling) 10 lots of EU50 in EUR account

Number of Lots Required Margin Open Price Margin Requirement
Calculation Before 10 40 2977 10 (lots) * 40 (Required Magin) = 400 EUR
Calculation from August 1st 10 1% 2977 10 (lots) *1 (Contract Size) * 2977 (Open Price) * 1%  (Required Margin)= 297.7 EUR

In case the base currency of your trading account is not nominated in USD, the calculated Margins will be automatically changed to the currency of your account.

All new updates will be made in the official website on August 1st. For more information, please refer to the website and find out after the date above.

Below are the new margin requirements that will be in effect as of August 1st 2016:

Instrument New Margin Percentage Current Margin
COCOA 2% 80
COFFE 2% 330
CORN 2% 35
COTTO 2% 140
HGCOP 2% 110
SBEAN 2% 90
SUGAR 2% 130
WHEAT 2% 45
AUS200Cash 1% 70
EU50Cash 1% 40
FRA40Cash 1% 40
GER30Cash 1% 85
HK50Cash 1.5% 400
IT40Cash 1% 210
JP225Cash 0.5% 90
NETH25Cash 1% 5
SPAIN35Cash 1% 120
SWI20Cash 1% 85
UK100Cash 1% 70
US100Cash 1% 30
US30Cash 1% 150
US500Cash 1% 12
CHINA50Cash 1.5% 130
SINGCash 1.5% 4
CHI50 1.5% 130
EU50 1% 40
FRA40 1% 40
GER30 1% 85
JP225 0.5% 90
SING 1.5% 4
SWI20 1% 85
UK100 1% 70
US100 1% 30
US30 1% 150
US500 1% 12
PALL 4.5% 280
PLAT 4.5% 500
GSOIL 3% 50
NGAS 3% 130
OIL 1.5% 60
OILMn 1.5% 6
BRENT 1.5% 60

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