As you start your trading career, two of the most fundamental concepts for you to grasp is the use of Leverage & Margin and, how the Leverage determines the required Margin.
Flexible leverage between 1:1 – 1:200
Secured deposit & withdrawal methods
Real-time risk exposure monitoring
No changes in margin overnight or at weekends
| Instrument | Description | Minimum spread (in points) |
Average Spread (in points) |
Swap Buy Position (in points) |
Swap Sell Position (in points) |
|---|---|---|---|---|---|
| EURUSD | Euro vs US Dollar | 3 | 4 | -5.86 | -0.052 |
| GBPUSD | Great Britan Pound vs US Dollar | 8 | 8 | -5.551 | -5.187 |
| USDCHF | US Dollar vs Swiss Franc | 6 | 9 | 0.266 | -5.694 |
| USDCHF | US Dollar vs Swiss Franc | 6 | 9 | 0.266 | -5.694 |
| USDCHF | US Dollar vs Swiss Franc | 6 | 9 | 0.266 | -5.694 |
| USDCHF | US Dollar vs Swiss Franc | 6 | 9 | 0.266 | -5.694 |
| Instrument | Description | Minimum spread (in points) |
Average Spread (in points) |
Swap Buy Position (in points) |
Swap Sell Position (in points) |
|---|---|---|---|---|---|
| XAUUSD | Gold Vs US Dollar | 14 | 19 | -6.13 | -3.27 |
| XAUAUD | Gold Vs Australian Dollar | 45 | 50 | -7.44 | -5.912 |
| XAUEUR | Gold Vs US Euro | 30 | 35 | -1.95 | -5.89 |
| Instrument | Description | Minimum spread (in points) |
Average Spread (in points) |
Swap Buy Position (in points) |
Swap Sell Position (in points) |
|---|---|---|---|---|---|
| XAUUSD | Gold Vs US Dollar | 14 | 19 | -6.13 | -3.27 |
| XAUAUD | Gold Vs Australian Dollar | 45 | 50 | -7.44 | -5.912 |
| XAUEUR | Gold Vs US Euro | 30 | 35 | -1.95 | -5.89 |
| Instrument | Description | Minimum spread (in points) |
Average Spread (in points) |
Swap Buy Position (in points) |
Swap Sell Position (in points) |
|---|---|---|---|---|---|
| XAUUSD | Gold Vs US Dollar | 14 | 19 | -6.13 | -3.27 |
| XAUAUD | Gold Vs Australian Dollar | 45 | 50 | -7.44 | -5.912 |
| XAUEUR | Gold Vs US Euro | 30 | 35 | -1.95 | -5.89 |
What is Margin?
Margin is the amount of collateral to cover any credit risks arising during your trading operations.
Margin is expressed as the percentage of position size (e.g. 5% or 1%), and the only real reason for having funds in your trading account is to ensure sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000.
So that you can open new trades, the margin level in your trading account needs to be equal or above 100%; otherwise, the new trades will result in your trading account being fully hedged.
Margin is expressed as the percentage of position size (e.g. 5% or 1%), and the only real reason for having funds in your trading account is to ensure sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000.
So that you can open new trades, the margin level in your trading account needs to be equal or above 100%; otherwise, the new trades will result in your trading account being fully hedged.
What is Leverage?
Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 200:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 200,000 USD/JPY, your leverage will equate 200:1.
How would it be possible to trade 200 times the amount you have at your disposal?
At BlueMartin you have a free short-term credit allowance whenever you trade on margin: this enables you to purchase an amount that exceeds your account value. Without this allowance, you would only be able to buy or sell tickets of $1,000 at a time.
