Margin & Leverage
Understand how margin and leverage work at MCM. Learn about our leverage options, margin requirements, and how to use leverage responsibly.
Key Concepts
Understand the essential concepts behind leverage and margin before you trade.
What is Leverage?
Leverage allows you to control larger positions with a smaller capital outlay.
Margin Required
Margin is the amount required to open and maintain a leveraged position.
Amplified Risk
Higher leverage amplifies both potential profits and potential losses.
Margin Call
When equity falls below required margin, a margin call may be triggered.
Understand Leverage Before You Trade
Learn the core principles of margin, leverage, and risk so you can trade with greater clarity and control.
Leverage by Instrument
Indicative leverage and margin requirements across selected instrument types.
| Instrument Type | Max Leverage* | Margin Required |
|---|---|---|
| Major Forex Pairs | Up to X:1* | From X%* |
| Minor Forex Pairs | Up to X:1* | From X%* |
| Gold (XAU/USD) | Up to X:1* | From X%* |
| Indices | Up to X:1* | From X%* |
| Commodities | Up to X:1* | From X%* |
*Leverage levels are subject to eligibility, account type, and regulatory requirements. Contact us for exact figures.
How Margin Works
When you open a leveraged position, you only need to deposit a fraction of the total trade value. This deposit is called margin.
Example
With 1:100 leverage, to open a $100,000 position, you would need $1,000 in margin (1% of the position size).
Margin Levels
- Free Margin: Available funds for opening new positions
- Used Margin: Funds locked as collateral for open positions
- Margin Level: (Equity / Used Margin) × 100%
- Margin Call Level: When margin level falls below a certain threshold
- Stop Out Level: Positions may be automatically closed to protect your account
Risk Warning
Trading with leverage carries a high level of risk. While leverage can amplify profits, it can equally amplify losses. You may lose more than your initial deposit. Only trade with money you can afford to lose and ensure you understand the risks involved.
Ready to Start Trading?
Open an account and access flexible leverage options suited to your trading style.