Forex trading involves risk. Losses can exceed deposits

Forex margins

Our tiered margining system means we can offer rates that remain competitive while reflecting the size of your position and associated liquidity of the market.

Forex trading involves risk. Losses can exceed deposits

What is margin in spot forex trading?

Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need.

Margin is the amount of money you need to open a position, defined by the margin rate.

For example: if you were to buy $1000-worth of currency through a traditional broker, you’d need to pay the full $1000 upfront (plus the associated broker charges).

As rolling spot forex is a leveraged product, you don’t need to pay the full value of your exposure in order to trade. Instead, you’ll only need to put up a fraction of your total exposure to open your position.

When trading on margin, it's important to be aware that your risk is based on the full value of your exposure. Using leverage means that you can incur increased losses, which can exceed your deposits.

There are two types of margin to consider in forex trading:

Initial margin

The initial margin is the minimum amount you’ll need to put up to open a position. It is sometimes called the deposit margin, or just the deposit.

Maintenance margin

The maintenance margin, also known as variation margin, is additional funds that may be required from you if your position moves against you. Its purpose is to ensure you have enough money in your account to fund the present value of the position at all times – covering any running losses.

Our forex margin requirements

Here's a summary of our margin requirements for some of our most popular markets.

Larger positions may occasionally be subject to higher rates. See each market's charges and costs in our platform for full details.

Forex

Margin per contract

EUR/USD 2%
GBP/USD 5%
AUD/USD 3%
EUR/JPY 4%
USD/CHF 3%

Things to remember

  • Ensure you have enough funds in your account to cover both margin and losses. Remember, if you have insufficient funds you may be put on margin call.

You might be interested in...

  • What are the risks?

    Learn about the risks associated with trading on financial markets.

  • Learn about IG

    See how our parent company, IG Group has been changing the face of trading for 45 years.

  • Web and mobile apps

    Our platform is available on desktop, tablet and mobile.

Contact us

New Accounts

1 844 IG USA FX

newaccounts.us@ig.com

Trading Services

1 312 981 0498

helpdesk.us@ig.com