Margin Explaination

[Trader9918]

Hi All,

I am very new to the platform, I have opened a Demo account to trial my first ever trading strategy. My confidence and knowledge is growing with each trade that I make so I am nearing transferring to a live account and depositing a nice wallet to try my hand, however I have been trying to figure out how the margin works and if I am able to reduce the margin? I fear leverage as I know that the losses can be amplified, I just want some clarification on what the margin actually represents on the platform? 

I thank anyone in advance for their assistance. 

[ArvinIG]

51 minutes ago, Trader9918 said:

Hi All,

I am very new to the platform, I have opened a Demo account to trial my first ever trading strategy. My confidence and knowledge is growing with each trade that I make so I am nearing transferring to a live account and depositing a nice wallet to try my hand, however I have been trying to figure out how the margin works and if I am able to reduce the margin? I fear leverage as I know that the losses can be amplified, I just want some clarification on what the margin actually represents on the platform? 

I thank anyone in advance for their assistance. 

Hi @Trader9918, the margin requirements for Forex can be find on : https://www.ig.com/au/help-and-support/cfds/fees-and-charges/what-are-igs-forex-cfd-product-details

Unfortunately, you won't be able to change the margin requirements as they have been recently changed as per ASIC regulations, more details here.

CFDs are leveraged products, meaning you don’t have to pay the full value of your exposure to deal. Instead, you only need to put up a fraction of your trade’s total value to open your position. This opening amount is called initial margin – it is also sometimes referred to as deposit margin.

Finally, the margin requirements can be find on the link above or on the platform on the deal ticket and the 'info' tab then 'Margin requirements':
 

I hope that this information helps !

All the best - Arvin

[Trader9918]

Hi @ArvinIG

Thank you for your breakdown and information. I really appreciate it!!