Margin & Leverage
Maximise Your Trading Potential with Smart Use of SwiftTrader's Dynamic Leverage and Margin requirements.
What is Margin & Leverage
Margin
Leverage allows you to trade larger volumes with a smaller investment by borrowing funds from SwiftTrader. This amplifies price movements, leading to proportionally higher profits or losses, so it must be used wisely.
Leverage
Margin is the amount required in your SwiftTrader account to open and maintain a trading position. It is calculated as a percentage of your open positions’ exposure and is not a fee. The margin is the amount held to support your trades, which will be released when your exposure decreases. Your excess account balance, known as Free Margin, can be used to open additional positions.
Refer and earn with a regulated CFD Provider
Dynamic Leverage: Maximizing Trading Potential
Dynamic Leverage is a cutting-edge feature designed to amplify your trades while ensuring responsible risk management. Unlike traditional fixed leverage, Dynamic Leverage adjusts according to your trading volume or account equity, allowing for more efficient capital utilization and enhanced trading potential.
How Does Dynamic Leverage Work?
Dynamic Leverage operates based on the principle of adjusting leverage ratios according to your equity and trading volume. As your exposure increases, the leverage provided decreases, enabling you to manage risk and market exposure more effectively. This innovative approach ensures that leverage is tailored to your trading activity, optimizing your trading experience.
Understanding Margin Used
Margin Used is a critical component of Dynamic Leverage calculation. It represents the amount funds allocated as collateral for opening trading positions. The margin required is determined by the symbol’s leverage and exposure, providing a clear indication of the capital required for trading.
Dynamic Leverage on our products
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
0 |
1 |
1000 |
|
2 |
1 |
5 |
500 |
|
3 |
5 |
10 |
200 |
|
4 |
10 |
+ |
100 |
*Note • CHF pairs are 200:1 • TRY pairs are 50:1
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
0 |
1 |
1000 |
|
2 |
1 |
4 |
500 |
|
3 |
4 |
10 |
200 |
|
4 |
10 |
+ |
100 |
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
0 |
1 |
1000 |
|
2 |
1 |
5 |
500 |
|
3 |
5 |
20 |
200 |
|
4 |
20 |
+ |
100 |
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
0 |
5 |
500 |
|
2 |
5 |
10 |
200 |
|
3 |
10 |
15 |
100 |
|
4 |
15 |
+ |
50 |
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
0 |
10 |
500 |
|
2 |
10 |
200 |
200 |
|
3 |
20 |
40 |
100 |
|
4 |
40 |
+ |
50 |
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
0 |
25 |
500 |
|
2 |
25 |
50 |
200 |
|
3 |
50 |
75 |
100 |
|
4 |
75 |
+ |
50 |
| Level | From | To | Leverage |
|---|---|---|---|
|
1 |
– |
5,000 |
1000 |
|
2 |
5,001 |
10,000 |
800 |
|
3 |
10,001 |
50,000 |
400 |
|
4 |
50,001 |
100,000 |
100 |
|
5 |
100,001 |
200,000 |
50 |
|
6 |
200,001 |
+ |
20 |
Swift Traders 50% Hedge Margin Requirement
What is Hedge Margin?
Hedge margin refers to the amount of margin required to maintain positions that offset each other, such as buying and selling the same instrument simultaneously. Hedge margin requirements are lower than the margin needed for non-hedged positions, but they still serve to ensure that traders maintain sufficient funds in their accounts.
How to Calculate the 50% Hedge Margin
To calculate the hedge margin, follow these steps:
- Calculate the margin for both the buy and sell sides.
- Apply the 50% hedge margin factor.
Client A has a 1 lot hedge position on EUR/USD with 1000:1 leverage and an initial margin of 1% as an example.
- Step 1: Calculate Margin for Buy Side
- Margin = (1 lot * 100,000) / 1000 * 1 = 100 EUR
- Step 2: Calculate Margin for Sell Side
- Margin = (1 lot * 100,000) / 1000 * 1 = 100 EUR
- Step 3: Apply the 50% Hedge Margin Factor
- Total Initial Margin (Buy + Sell) = 100 EUR (Buy) + 100 EUR (Sell) = 200 EUR
- Hedge Margin = 50% * 200 EUR = 100 EUR
A fully hedged position of 1 lot EUR/USD with 1000:1 leverage, the margin requirement would be 100 EUR.
Benefits of the 50% Hedge Margin
- Enhances Account Management: Helps ensure that you can manage your positions effectively, preventing situations where your positions become locked due to insufficient margin.
- Creates a Fair Trading Environment: Supports a more realistic and transparent Profit and Loss (P&L) calculation, reflecting your true trading performance.
FX Majors
Dynamic Leverage based on Account Equity
| Level | Range | Leverage |
|---|---|---|
|
1 |
$0 – $10,000 |
1000 |
|
2 |
$10,001 – $20,000 |
800 |
|
3 |
$20,001 – $30,000 |
600 |
|
4 |
$30,001 – $40,000 |
400 |
|
5 |
$40,001 – $50,000 |
300 |
|
6 |
$50,000 + |
200 |
FX Minors, Exotics, Metals, Commodities, Index
Dynamic Leverage based on Account Equity
| Level | Range | Leverage |
|---|---|---|
|
1 |
$0 – $10,000 |
1000 |
|
2 |
$10,001 – $20,000 |
500 |
|
3 |
$20,001 – $30,000 |
400 |
|
4 |
$30,001 – $40,000 |
300 |
|
5 |
$40,001 – $50,000 |
200 |
|
6 |
$50,000 + |
100 |
*Note
- CHF pairs are 200:1
- TRY pairs are 50:1
Cryptocurrency (Bitcoin, Ethereum, Bitcoin Cash)
Dynamic Leverage based on Lots
| Level | Range | Leverage |
|---|---|---|
|
1 |
0 – 10 |
500 |
|
2 |
11 – 20 |
250 |
|
3 |
21 – 50 |
50 |
|
4 |
51 + |
1 |
What makes Swift Trader preferred by traders
Discover why traders choose Swift Trader for its unbeatable combination of advanced tools, fast execution, and competitive trading conditions.
Great Customer Support
Raw spreads from 0.1 pips
Micro lots available
Up to 1:400 Leverage
Negative Balance Protection
300+ trading instruments
Crypto as a funding method
Fast withdrawals
3 Step account opening
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