Do not invest more money than you can afford to lose.
Multi-asset brokerage house ETX Capital has lowered the minimum margin requirements on several selected global indices and major commodities, the broker said earlier this week. The broker did not explain its move.
For some instruments margins have been halved, which means that leverage rates have been doubled. Following is a list of the instruments that have been updated and their margin rates:
Current Margins | New Margins | |
FTSE | 0.75% | 0.50% |
DOW | 0.75% | 0.50% |
DAX | 0.75% | 0.50% |
S&P | 0.75% | 0.50% |
NASDAQ | 0.75% | 0.50% |
GOLD | 1.50% | 0.70% |
SILVER | 2% | 1% |
Nymex | 2% | 1% |
Brent | 2% | 1% |
The margin rate shows the minimum amount traders are required to keep in their account balances when trading with leverage, a type of virtual borrowing that traders can get from their brokers. In most countries there are no legislative restrictions regarding how much leverage brokers can offer, but there are legislations that impose certain restrictions on leverage, mainly for retail trading. In the US, for instance, the leverage cap is 50:1, while in Poland it is 100:1. Meanwhile, in Turkey trading accounts with balance of less than TRY 20,000 cannot offer leverage rates of more than 50:1 for trading of gold and popular currency pairs such as the EUR/USD, USD/TRY, and EUR/TRY, and the maximum leverage for other pairs is 25:1. Leverage for popular pairs traded via accounts with more than TRY 20,000 is set at a maximum 100:1, while for other currency pairs the cap is 50:1.
ETX Capital, based in London, is a trading name of Monecor. It holds a license by the UK Financial Conduct Authority (FCA). The broker offers trading in forex, binary options, CFDs, indices, equities, commodities, and spread betting.
