• How It Works
• Leverage
• Tight Spreads
• Guaranteed Stops

Leverage

Trading forex on margin helps you make the most of your capital. Using Stop Orders you can gain as much as 700:1 leverage on your position.

The standard margin requirement to open an FX position is just 2%. This means that, for a single contract on, say, GBP/USD worth £100,000 you need outlay a deposit of just (£100,000 x 2%) = £2000. This represents leverage of 50:1.

Our margin requirement also decreases when you attach a Stop Order to your position, as you are effectively decreasing your level of risk. The closer your Stop is to the current market level, the more the margin requirement will be reduced.

In this way you can reduce your margin requirement with IG Markets to as little as 0.14%, for a leverage on your initial outlay of over 700:1.

Example: EUR/USD

Say you buy ten contracts of EUR/USD (the equivalent of E1m) at 1.3000 without a Stop. The margin to open this position will be 2% x E1m = E20,000. Leverage = 50:1.

However, if you open the same position with a Stop placed 5 pips away from the opening price at 1.2995 your margin will be reduced to just E1385. Leverage = 722:1.