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Invest in FX Market > Spreads and Margins > Margin Calculations And Examples
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Calculations for Margin Requirements:
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Initial Margin: MMR x 5 x lots traded
Maintenance Margin: MMR x 3 x lots traded
Liquidation Margin: MMR x lots traded
MMR* calculates the margin requirement based on 1% of gross principal value within 50-100 points of the current market value. MMR value is posted in the 'simple dealing rates' window on the FXCM Asia Trading Station and is recalculated from time to time in order to reflect current market conditions. Under normal market conditions, MMR will be recalculated at approximately 5pm Eastern Standard Time each day.
*MMR: Minimum Margin Requirement
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Examples
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Initial Margin Requirement:
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Trader wants to buy 3 lots (30,000) EUR/USD while the current price is at 1.2938/1.2943 (MMR shows US$130). The Initial margin requirement is calculated as follow:
US$130 x 5 x 3
= US$1,950
The initial margin requirement per lot is US$650.
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Maintenance Margin Requirement:
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Trader wants to buy 3 lots (30,000) EUR/USD while the current price is at 1.2938/1.2943 (MMR shows US$130). The maintenance margin requirement is calculated as follow:
US$130 x 3 x 3
= US$1,170
The maintenance margin requirement per lot is US$390.
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Liquidation Margin Requirement:
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Trader wants to buy 3 lots (30,000) EUR/USD while the current price is at 1.2938/1.2943 (MMR shows US$130). The liquidation margin requirement is calculated as follow:
US$130 x 3
= US$390
The liquidation margin requirement per lot is US$130.
Note: The above examples are for references only
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