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What is margin?

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Margin is the total amount of money required in order to open a position. Margin is calculated based on the current price of the base currency against the USD, the size (volume) of the position and the leverage applied to your trading account. The free margin is the amount of funds that is available to open new positions.

The Margin calculation is as follows:

Margin required = (current market price x Volume) / Account leverage

In practice this would be calculated as follows:

If open a position of 0.1 lot (10,000) in EUR/USD at the current market price of 1.09358 and your account has a leverage of 1:500 you would calculate the margin required as follows:

(1.09358 x 10,000) / 500 = $21.87

In this example the margin on this position would be $21.87, therefore in order to open a position of this size you would require at least $21.87 in free margin in your trading account.

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Risk Warning: Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Baxia Markets, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing the entirety of your initial investment). You must assess and consider them carefully before making any decision about using our products or services.

Baxia Global Limited is a company registered in Seychelles with registration number: 8426970-1, and is regulated by the Financial Services Authority of Seychelles with License number: SD104.

Baxia Limited is a company registered in The Bahamas with registration number: 177330 B, and is licensed and regulated by The Securities Commission of The Bahamas (SCB), (SIA-F234).

Baxia Holdco Ltd, a company incorporated in the Republic of Cyprus with registration number ΗΕ 413062, at 4 Agiou Georgiou Makri, 6037 Larnaca, Cyprus, is a Paying Agent of Baxia Global Ltd. All payments related to Paysafe and other companies are processed by Baxia Holdco Ltd.

Baxia Markets is a member of The Financial Commission, an independent external dispute resolution (EDR) organization. The interests of Baxia Markets clients are protected by the Financial Commission’s Compensation Fund for up to €20,000 per claim.

The information on this website is general in nature and doesn’t take into account your personal objectives, financial circumstances, or needs. It is not targeted at the general public of any specific country and is not intended for distribution to residents in any jurisdiction where that distribution would be unlawful or contravene regulatory requirements. Baxia Markets does not offer its services to residents of certain jurisdictions such as USA, Cuba, Sudan/Republic of Sudan, Syria, Iran, Iraq, South Sudan, Venezuela, Libya, Belarus, Afghanistan, Myanmar, Russia, Crimea, Donetsk, Luhansk, Palestine, Yemen and North Korea.