Leverage Levels

 

ArgusFX has designed its trading system in a way that offers to its retail clients the default leverage limit of 1:50, in order to be in compliance with ESMA rules and regulations and hence demonstrate that this is in the best interest of its retail clients. However, ArgusFX clients have the option to change the default to a higher leverage level through the Client Portal. ArgusFX will examine each change of leverage request and take into serious consideration the company’s risk management and assessment criteria and proceed accordingly. 

 

Risk Multiplier

At ArgusFX we place great emphasis on protecting our clients; we are continuously assessing the risk of all our trading products and we apply strict margin requirement rules, which are based on various factors that affect the risk element of each financial product. 

Factors that we analyse include but are not limited to:

  • Market volatility 
  • Financial product liquidity
  • Political instability in the country the product is being offered or instability surrounding the country’s currency
  • Pegs imposed on various currencies
  • Central banks’ behaviors on countries’ interest rates 
  • Central banks’ history of currency interventions that are not market driven

The higher the risk, the larger the risk multiplier and consequently the margin required in order to open a position. In this way, we protect our clients in an effort to minimise the risk and potential loss they will face in opening positions on instruments we categorise as risky.

The multiplication factor used to calculate the margin required to open a transaction in Forex instruments.The margin requirement is the initial margin needed based on Account leverage multiplied by the integer. Risk Multiplier is used for Over-The-Counter transactions and/or for Margin Transactions specifying the minimum amount needed to open a potential transaction. Risk multiplier is sorting financial instruments based on their risk level. You can use our Margin calculator to get the exact amount you need to open a trade and maintain a portfolio. Risk Multipliers can be found here.

 

Margin Calculation for Forex

Account Leverage is 1:200. Margin for opening 1 lot EURUSD is calculated as follow:

((Quantity of Lots x Contact Size) X Account Leverage) x Risk Multiplier = Margin Required in Base currency

(1 x 100,000)x (1/200) = 500 EUR X 2 = 1,000 EUR

  •  Attention: Risk Multiplier remains in place despite of clients’ requests for maximum leverage increase.
  • Please be advised that all margin rates will be continuously reviewed on an ongoing basis.

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