Margin trading allows you to control a larger position by depositing only a fraction of its total value.

Margin is used to cover potential exposure on your open positions.

Profits and losses are calculated on the full position value, which means you may lose more than your initial deposit depending on leverage and market movement.

Margin requirements vary by product and leverage restrictions, and they may change regularly.

Proper risk management (such as stop-loss orders or position sizing) is essential to avoid excessive losses.

Margin requirement is shown as a ratio or percentage depending on the instrument.

A lower margin percentage means higher leverage. For example, a 3.33% margin is equivalent to 30:1 leverage.

Examples:

Forex (EUR/USD)

If you buy €100,000 worth of EUR/USD and the margin requirement is 3.33%, you must deposit €3,333 as the initial margin.

This is equivalent to 30:1 leverage.

Stocks (AAPL)

If AAPL’s share price is $245.54 and you buy 100 shares, the total position value is $24,554.

With a margin rate of 20%, you must deposit $4,910 as the initial margin.With a margin rate of 20%, you must deposit $4,910 as the initial margin.

This equals 5:1 leverage.

The platform will automatically convert margin requirements into your account currency at the prevailing conversion rate.

Leverage is the ratio of the notional value of a position to the required margin.

For example, if the margin requirement for AAPL shares is 20%, this is equivalent to 5:1 leverage.

At PhyxtTrade LTD, clients can trade under FCA and ESMA guidelines with the following maximum leverage levels:

• 30:1 for CFDs referencing a major currency pair (e.g., EUR/USD, GBP/USD).
• 20:1 for CFDs referencing a minor currency pair, gold, or a major stock market index (e.g., FTSE 100, DAX 40).
• 10:1 for CFDs referencing commodities other than gold or minor stock market indices.
• 5:1 for CFDs referencing individual shares or other assets.
• 👉 Note: “Major currency pairs” are those including USD and another major economy (e.g., EUR/USD, USD/JPY). “Minor pairs” are all others.

Hedging allows clients to open long and short positions of the same instrument at the same time in order to reduce exposure to market risk.

In most cases, the margin requirement for hedged positions is significantly reduced, and in some cases may be set to zero.

However, margin rules for hedged trades depend on the platform and regulatory requirements.

If a client does not set a stop-loss order, the platform will continue to use available margin to cover losses.

This means positions may remain open while losses are automatically deducted from the margin balance until all available margin is consumed.

Once the margin is fully depleted and account equity reaches zero, all positions will be forcibly closed.

👉 This highlights the importance of using stop-loss orders and proper risk management. Without stop-loss protection, traders risk losing their entire margin deposit.

• Forex
• Metals
• Commodities
• Indices
• Shares