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WM Markets Dynamic Leverage:
Margin requirements and guidelines
Dynamic Leverage is a risk management tool that aims to minimize risks deriving from high volume trading since leverage is based per instrument by tiers instead of per account.
Margin Requirements are set per symbol and automatically adapt in cases where the net number of lots on open positions increases or decreases in the client’s account. This is done per trading instrument.
Please note that the maximum leverage offered by WM Markets per symbol asset class is explained below in detail.
CFD Forex Majors
Weekend / Holiday: All new positions opened in the 3 hours prior to the market closing on the last trading day of the week or before a market holiday will require a minimum margin of
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 20 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: EURUSD
Volume traded: 20 lots
Margin requirement: 20 * 100,000 / 500 * 1.09000
Total Margin Required: 4,360 USD.
Example 2 – Account Leverage 1:500 , 120 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: EURUSD
Volume traded: 120 lots
Margin requirement for first level : 100 * 100,000 / 500 * 1.09000
Margin requirement for second level : 20 * 100,000 / 200 * 1.09000
Total Margin Required: 21,800 + 10,900 = 32,700 USD.
CFD Forex Minors
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 20 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: GBPAUD
Volume traded: 20 lots
Margin requirement: 20 * 100,000 / 500 * 1.28000
Total Margin Required: 5,120 USD.
Example 2 – Account Leverage 1:500 , 60 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: GBPAUD
Volume traded: 60 lots
Margin requirement for first level : 50 * 100,000 / 500 * 1.28000
Margin requirement for second level : 10 * 100,000 / 200 * 1.28000
Total Margin Required: 12,800 + 6,400 = 19,200 USD.
Note: Maximum leverage for ZAR, TRY, PLN, SEK, NOK, HUF , SGD , MXN crosses is:
Example 1 – Account Leverage 1:500 , 2 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: GBPSGD
Volume traded: 2 lots
Margin requirement: 2 * 100,000 / 100 * 1.28000
Total Margin Required: 2,560 USD.
Example 2 – Account Leverage 1:500 , 20 lots
Margin Requirement calculation:
Number of Lots * contract size / leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: GBPSGD
Volume traded: 20 lots
Margin requirement for first level : 10 * 100,000 / 100 * 1.28000
Margin requirement for second level : 10 * 100,000 / 50 * 1.28000
Total Margin Required: 12,800 + 25,600 = 38,400 USD.
CFD Metals
Weekend/ Holiday Policy: All new XAUUSD positions opened in the 3 hours prior to the market closing on the last trading day of the week or before a market holiday, require a minimum margin of
XPDUSD and XPTUSD follows the Dynamic Leverage Tiers of CFD Commodities table.
Dynamic Leverage for Gold, Silver CFDs and XAGUSD starts from 0.40%
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 20 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: XAUUSD
Volume traded: 20 lots
Margin requirement for first tier level: 5 * 100 / 500 * 1607.00
Margin requirement for second tier level: 15 * 100 / 250 * 1607.00
Total Margin Required: 1,607 + 9,642 = 11,249 USD.
Example 2 – Account Leverage 1:500 , 60 lots
Margin Requirement calculation:
Number of Lots * contract size / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: XAUUSD
Volume traded: 60 lots
Margin requirement for first tier level: 5 * 100 / 500 * 1607.00
Margin requirement for second tier level: 45 * 100 / 250 * 1607.00
Margin requirement for third tier level: 10 * 100 / 150 * 1607.00
Total Margin Required: 1,607.00 + 28926.00 + 10,713.33 = 41,246.33 USD.
CFD SPOT Indices
HK50CASH
Daily Break: All new positions opened in the 30 minutes prior to the market closing and 15 minutes after the market opening the following day require a minimum margin of
Weekend/ Holiday Policy: All new positions opened in the 3 hours prior to the market closing on the last trading day of the week or before a market holiday, require a minimum margin of
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 2 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: US30CASH
Volume traded: 2 lots
Margin requirement: 2 * 1 * 25280 / 400
Total Margin Required: 126.40 USD
Example 2 – Account Leverage 1:500 , 500 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: US30CASH
Volume traded: 500 lots
Margin requirement for first level: 50 * 1 * 25280 / 400
Margin requirement for second level: 150 * 1 * 25280 / 200
Margin requirement for third level: 300 * 1 * 25280 / 125
Total Margin Required: 3,160 + 18,960 + 60,672 = 82,792 USD.
CFD EU Indices
Daily Break: All new positions opened in the 30 minutes prior to the market closing and 15 minutes after the market opening the following day require a minimum margin of
Weekend/ Holiday Policy: All new positions opened in the 3 hours prior to the market closing on the last trading day of the week or before a market holiday, require a minimum margin of
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 2 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: UK100
Volume traded: 2 lots
Margin requirement: 2 * 10 * 6650 / 400
Total Margin Required: 332.5 USD.
Example 2 – Account Leverage 1:500 , 30 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: UK100
Volume traded: 30 lots
Margin requirement for first level: 5 * 10 * 6650 / 400
Margin requirement for second level: 15 * 10 * 6650 / 200
Margin requirement for third level: 10 * 10 * 6650 / 125
Total Margin Required: 831.25 + 4,987.5 + 5,320 = 11,138.75 USD.
Note: Maximum leverage for SWI20 & AUST20 is :
CFD US Indices
Daily Break: All new positions opened in the 30 minutes prior to the market closing and 15 minutes after the market opening the following day require a minimum margin of
Weekend/ Holiday Policy: All new positions opened in the 3 hours prior to the market closing on the last trading day of the week or before a market holiday, require a minimum margin of
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 2 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: US30
Volume traded: 2 lots
Margin requirement: 2 * 10 * 26100 / 400
Total Margin Required: 1,305 USD.
Example 2 – Account Leverage 1:500 , 30 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: US30
Volume traded: 30 lots
Margin requirement for first level: 5 * 10 * 26100 / 400
Margin requirement for second level: 15 * 10 * 26100 / 200
Margin requirement for third level: 10 * 10 * 26100 / 125
Total Margin Required: 3,262.5 +19,575 +20,880 = 43,717.5 USD.
CFD APAC Index
Example 1 – Account Leverage 1:500 , 20 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: HK50
Volume traded: 20 lots
Margin requirement: 20 * 50 * 26500 / 100
Total Margin Required: 265,000 USD.
Example 2 – Account Leverage 1:500 , 120 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: HK50
Volume traded: 120 lots
Margin requirement for first level: 100 * 50 * 26500 / 100
Margin requirement for second level: 20 * 50 * 26500 / 50
Total Margin Required: 1,325,000 + 530,000 = 1,855,000 USD.
Note: Maximum leverage for JP225 & AUS200 is :
Spot & CFD Energies
Note: End of Week Policy applies only for USCRUDE, UKBRENT, WTICASH, BRENTCASH
Weekend/ Holiday Policy: All new positions opened 3 hours prior to the market closing on the last trading day of the week or before a market holiday will require a minimum margin of
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 2%.
Example 1 – Account Leverage 1:500 , 2 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: USCRUDE
Volume traded: 2 lots
Margin requirement: 2 * 1000 * 46.50 / 100
Total Margin Required: 930 USD.
Example 2 – Account Leverage 1:500 , 55 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: USCRUDE
Volume traded: 55 lots
Margin requirement for first level: 50 * 1000 * 46.50 / 100
Margin requirement for second level: 5 * 1000 * 46.50 / 50
Total Margin Required: 23,250 + 4,650 = 27,900 USD.
Note: Maximum leverage for NATGAS is:
CFD Commodities
Example 1 – Account Leverage 1:500 , 10 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: COFFEEC
Volume traded: 10 lots
Margin requirement: 10 * 375 * 105.50 / 50
Total Margin Required: 7,912.50 USD.
Example 2 – Account Leverage 1:500 , 60 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: COFFEEC
Volume traded: 60 lots
Margin requirement for first level: 50 * 375 * 105.50 / 50
Margin requirement for second level: 10 * 375 * 105.50 / 25
Total Margin Required: 39,562.50 + 15,825 = 55,387.50 USD.
CFD Currencies
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 0.50%.
Example 1 – Account Leverage 1:500 , 10 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: EURCFD
Volume traded: 10 lots
Margin requirement: 10 * 125,000 * 1.11705 / 500
Total Margin Required: 2,792.63 USD.
Example 2 – Account Leverage 1:500 , 60 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: EURCFD
Volume traded: 60 lots
Margin requirement for first level: 50 * 125,000 * 1.11705 / 500
Margin requirement for second level: 10 * 125,000 * 1.11705 / 200
Total Margin Required: 13,963.13 + 6,981.56 = 20,944.69 USD.
CFD Treasuries
Example 1 – Account Leverage 1:500 , 10 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: 2TBILL
Volume traded: 10 lots
Margin requirement: 10 * 2000 * 108.625 / 250
Total Margin Required: 8,690 USD.
Example 2 – Account Leverage 1:500 , 60 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: 2TBILL
Volume traded: 60 lots
Margin requirement for first level: 50 * 2000 * 108.625 / 250
Margin requirement for second level: 10 * 2000 * 108.625 / 100
Total Margin Required: 43,450 + 21,725 = 65,175 USD.
CFD Shares
Instruments with default margin =< 5%
Instruments with default margin above 5%
Corporate actions (such as Stock Splits, Dividends, Earnings, etc) can affect the stock price. During such events, possible price market gaps are expected to occur following the announcements. In order to protect our clients, an increased margin is required during these times of volatility. On such events, the minimum margin required will be 20% for the whole trading session before the corporate action (ex-date) and 15 minutes after the market opening. This will apply only to new positions opened on the ex-date.
Daily Break: All new positions opened in the 30 minutes before market closing and 15 minutes after market opening the following day margin will be
Weekend/ Holiday Policy: All new positions opened in the 30 minutes before market closing and 15 minutes after market opening the following day margin will be
The Company’s Default margin requirement for each share may differ from the above table on specific shares, to check the minimum required margins per share please refer to the Product Outline
Example 1 – Account Leverage 1:500 , 2 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: SNAP
Volume traded: 2 lots
Margin requirement: 2 * 100 * 14.50 / 20
Total Margin Required: 145 USD.
Example 2 – Account Leverage 1:500 , 52 lots
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: SNAP
Volume traded: 52 lots
Margin requirement for first level: 50 * 100 * 14.50 / 20
Margin requirement for second level: 2 * 100 * 14.50 / 10
Total Margin Required: 3625 + 290 = 3915 USD.
CFD ETFs
Corporate actions (such as Stock Splits, Dividends, Earnings, etc) can affect the stock price. During such events, possible price market gaps are expected to occur following the announcements. In order to protect our clients, an increased margin is required during these times of volatility. On such events, the minimum margin required will be 20% for the whole trading session before the corporate action (ex-date) and 15 minutes after the market opening. This will apply only to new positions opened on the ex-date.
Daily Break: All new positions opened in the 30 minutes before market closing and 15 minutes after market opening the following day margin will be
Weekend/ Holiday Policy: All new positions opened in the 30 minutes before market closing and 15 minutes after market opening the following day margin will be
The Company’s Default margin requirement for each ETF may differ from the above table on specific shares, to check the minimum required margins per ETF please refer to the Product Outline
CFD Cryptos
Weekly
Important Note: For positions on ETH pairs the first two net open lot tiers are 0-2 and 2.01-10 lots respectively.
Weekly Leverage Policy: All new positions opened between the hours 23:30 – 00:30 Friday, 07:00 – 08:00 Saturday and 03:00 – 04:00 Sunday, require a minimum margin of 10%.
News/Holidays
News: All new positions opened 15 minutes before News and 5 minutes after the News require a minimum margin of 10%
Holidays: All new positions opened in the 3 hours prior to Market Holidays require a minimum margin of 10%.
Example 1 – Account Leverage 1:500, 2 lot
Margin Requirement calculation:
Number of Lots * contract size * market price / maximum leverage * conversion rate (if applicable)
Client Account Currency USD
Account Leverage – 1:500
Instrument to trade: XRPUSD
Volume traded: 2 lots
Margin requirement: 2 * 10000 * 0.8328 * 2%
Total Margin Required: 333 USD
Go back to Product Outline