The OANDA fxTrade platform supports margin trading, which means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you have an equal opportunity to incur significant losses in your account. It is a good practice to utilize stop loss orders to limit potential losses when utilizing leverage. Stop Loss orders are not guaranteed; gaps in market pricing may cause your Stop Loss orders to be filled at a less advantageous price. A good faith deposit or performance bond. In call trading, the margin amount is held in deposit while the trade is open. The amount of margin required to enter a trade is determined by the rules discussed below. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the Margin Available in your account will limit the size of the positions you can open. The reciprocal of Margin. The maximum leverage allowed is determined by the regulators in each geographic region. Clients and OANDA may choose to be conservative and limit leverage utilized to lower levels than allowed by the regulators. The minimum margin required by the regulator for the instrument. The margin required for the instrument in your account. This is the greater of the Regulatory Margin Requirement for the instrument and the margin you selected for your account. The Margin Used represents how much of your Net Asset Value is currently held as margin against your open positions. The Margin Used is equal to the position size multiplied by the Margin Requirement, summed up over all open positions. This amount is then converted into the currency of the account using the current midpoint rate. See the Margin Used Calculation Example below for an example on how to calculate your margin used. The Margin Available value is the greater of 0 and your Net Asset Value level your Margin Used. See the Margin Closeout Value Calculation Example below for an example of how to calculate your account equity. The Initial Margin for a trade is equal to the trade size multiplied by the Margin Requirement. This amount is then converted into the currency of the account. When opening a new trade, your Initial Margin must be less than or equal to your Margin Available. If your Initial Margin is greater than your Margin Available, you cannot open the trade. If your Margin Closeout Value falls to less than half of your Margin Used, all open positions will be automatically closed using the current call rates at the time of closing. If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains under-margined. Note about Margin Closeouts: In a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. The Regulatory Margin Used is equal to the position size multiplied by the Regulatory Margin Requirement specified by the regulator, summed up over all open positions. When you receive a Margin Call alert by email, you are required to deposit additional funds or close open positions to return your Margin Closeout Value to greater than your Regulatory Margin Used. Should you use your own margin requirements that are more conservative than the Regulatory Margin Requirements, you may not receive one of these margin calls and should only expect them when the account falls below the regulatory value. OANDA will send daily margin call emails to accounts that fall below margin requirements at 4: When an account remains under-margined for 2 consecutive trading days, all open positions will be automatically closed using the current fxTrade rates at the time of closing. If trading is unavailable for certain open positions at this time, they will be automatically closed using the current fxTrade rates when the markets for those instruments re-open. Margin Requirement is checked at 4: Level if the account satisfies the Margin Requirement during the day but falls below for the 4 PM ET check, the account will be considered undermargined. Note about Margin Call: I t is important to note that Margin Calls are calculated only using the Regulatory Margin Requirements. If you have selected a Margin Requirement that is more conservative than the Regulatory Margin Requirement, you may not receive any Margin Call alerts. You have a USD account with margin leverage set to For the leverage calculation, the lower of the maximum regulated leverage and your selected leverage is used. The regulator allows Governed by the National Futures Association NFAOANDA Corporation establishes margin rates and maximum leverage at their discretion. See the OANDA Corporation margin rates list. You must maintain sufficient margin in your account to support your open positions. You are responsible for monitoring your account to prevent margin closeouts. Be mindful of the " Margin Closeout Percent " field in the Account Summary of the fxTrade user interface. For example, if your account remains undermargined, starting on Monday before 4 p. Saturday and Sunday do not count towards the 2 consecutive days as trading is not available on weekends see OANDA Hours of Operation. If the account recovers before the end of 2 consecutive trading days by meeting the margin requirements at the 4: For example, if your account is undermargined on Monday at 4 p. See more detailed information on how to calculate margin. If you choose a lower leverage, constant monitoring is still required to avoid margin closeouts. Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure. If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:. This effectively lowers the amount of margin required, giving you more breathing room. Some people erroneously believe that OANDA might benefit from a client getting a margin closeout. The truth is that OANDA does not benefit at all. Margin who forex money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading. The bottom line is that each margin closeout harms a client and it harms OANDA. But it also protects clients from greater losses. The OANDA fxTrade platform supports margin tradingwhich means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can strongly leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you can potentially incur significant losses in your margin capital very quickly. To ensure you can cover any losses you might incur on your positions, OANDA requires sufficient collateral. This collateral is typically referred to as margin. Although there is no minimum deposit required to open an fxTrade account with OANDA, the Margin Available in your account will limit the size of the positions you forex open. The term leverage is often used to describe the margin requirements. For example, leverage of Another way of saying the same thing: The Investment Industry Regulatory Organization of Canada IIROC establishes margin rates, which may vary from time to time. Margin requirements also vary given the base currency of your account. See the Canadian margin rates list. If this calculation is less than the margin requirement for the leverage set on your account, it takes precedence if it is higher, then your default leverage is used. See more detailed information on how to calculate margins. It is still possible for an account to also receive a margin closeout earlier due to the Margin Closeout Value declining to half, or level than half, of the Margin Used. Saturday and Sunday do not count towards the 7 consecutive days as trading is not available on weekends see OANDA Hours of Operation. If the account recovers by 4 p. Y ou may lose more than you invest. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open. OANDA fxTrade requires a specific margin to be available in your account for each currency pair you trade in. Below is the list of margin rates applicable for each currency pair. See the OANDA Europe margin rates list. When the Margin Closeout Value declines to half, or less than half, of the Margin Used. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the forex you can open and will affect when you receive a margin alert and possible margin closeout. A margin closeout is the situation when the fxTrade platform automatically closes all of your open positions in the affected account, to significantly decrease the probability of losing more than the amount of collateral in your account. A leverage of See the OANDA Asia Pacific margin rates list. A margin closeout will be triggered when the Margin Closeout Value declines to half, or less than half, of the Margin Used. In addition, at 4 a. Singapore time each trading day, OANDA will send daily emails to accounts that fall below margin requirements for their aggregate open positions and are at risk of approaching a margin closeout. A margin closeout is the situation when the fxTrade platform automatically closes ALL of your open positions in the affected account, to significantly decrease the probability of losing more than the amount of collateral in your account. OANDA offers a maximum leverage of OANDA fxTrade requires a specific margin to be available in your account for each currency pair or CFD you trade in. Below you can find the list of margin rates applicable for each currency pair or CFD. See the OANDA Australia margin rates list. All other trademarks appearing on this Website are the property of their respective owners. Leveraged trading in foreign currency contracts or other off-exchange products on margin carries a high level of risk and may not be suitable for everyone. We advise you to carefully consider whether trading is appropriate for you in light of your personal circumstances. You may lose more than you invest. Information on this website is general in nature. We recommend that you seek independent financial advice and ensure you fully understand the risks involved before trading. Trading through an online platform carries call risks. Refer to our legal section here. Financial spread betting is only available to OANDA Europe Ltd customers who reside in the UK or Republic of Ireland. CFDs, MT4 hedging capabilities and leverage ratios exceeding OANDA Corporation margin a registered Futures Commission Merchant and Retail Foreign Exchange Dealer with the Commodity Futures Trading Commission and is a member of the National Futures Association. Please refer to the NFA's FOREX INVESTOR ALERT where appropriate. OANDA Canada Corporation ULC accounts are available to anyone with a Canadian bank account. OANDA Canada Corporation ULC is regulated by the Investment Industry Regulatory Organization of Canada IIROC and customer accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request or at www. OANDA Europe Limited is a company registered in England number limited by shares with its registered office at Tower 42, Floor 9a, 25 Old Broad St, London EC2N 1HQ and is authorised and regulated by the Financial Conduct AuthorityNo: OANDA Asia Pacific Pte Ltd Co. No K holds a Capital Markets Services Licence issued by the Monetary Authority of Singapore and is also licenced by the International Enterprise Singapore. OANDA Australia Pty Ltd is regulated by the Australian Securities and Investments Commission ASIC ABN 26AFSL No. It's important for you to consider the current Financial Service Guide FSGProduct Disclosure Statement 'PDS'Account Terms and any other relevant OANDA documents before making any financial investment decisions. These documents can be found here. First Type I Financial Instruments Business Director of the Kanto Local Financial Bureau Kin-sho No. Have questions or need help? United States Avoid margin closeouts. Know about margin and how it works. Margin Used Calculation Example: OANDA's Margin Requirements Governed by the National Futures Association NFAOANDA Corporation establishes margin rates and maximum leverage at their discretion. What Happens with a Margin Closeout? A margin closeout will be triggered in the following circumstances: When the Margin Closeout Value declines to half, or less than half, of the Margin Used, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. OANDA will send daily emails to accounts that fall below margin requirements at 4 p. When an account remains undermargined for 2 consecutive trading days, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. Any remaining open positions will automatically close at the current fxTrade rate when the markets for those instruments re-open. How to Avoid Margin Closeouts Take proactive measures to avoid getting a margin closeout on your account. For example, Monitor the status of your account continuously. Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off. Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss. Stop Loss and Take Profit orders are not guaranteed; gaps in market pricing may cause your Stop Loss orders to be filled at a less advantageous price, or your Take Profit orders to be filled at a more advantageous price than the level you specify. If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it: Incrementally reduce the size of your positions as you get close to a margin closeout. Close individual positions to reduce the amount of margin required. If you are using a lower leverage, you can increase the leverage on your account as a last resort. Transfer additional funds into the account from another subaccount. Add funds to the account. Note, however, that the time it takes to add funds could mean your funds arrive too late. Nobody Profits from Margin Closeouts! Canada Avoid margin closeouts. OANDA Canada Margin Requirements The Investment Industry Regulatory Organization of Canada IIROC establishes margin rates, which may vary from time to time. When an account remains undermargined for 7 consecutive trading days, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. Europe Avoid margin closeouts. OANDA Europe's Margin Requirements OANDA fxTrade requires a specific margin to be available in your account for each currency pair you trade in. Transfer additional funds into your account. Asia Pacific Avoid margin closeouts. OANDA Asia Pacific's Margin Requirements OANDA fxTrade requires a specific margin to be available in your account for each currency pair you trade in. Australia Avoid margin closeouts. OANDA Australia's Margin Requirements OANDA fxTrade requires a specific margin to be available in your account for each currency pair or CFD you trade in. Customer Support Chat with an agent. SUPPORT PRESS ROOM CAREERS CONTACT US. PRIVACY POLICY TERMS OF USE SITE MAP. United States Canada Europe Asia Pacific Australia United States Avoid margin closeouts.
What is Leverage, Margin and Risk in Currency Trading?
What is Leverage, Margin and Risk in Currency Trading?
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