Transactions conducted in the SWFX marketplace may be done on a margin trading basis, enabling a client to execute trades larger than the deposit, amplifying price movement effect. The multi-currency exposure of the account is limited by the total trading line which is calculated by multiplying the Equity of the account by the leverage agreed with Dukascopy Europe. Maximum leverage values applicable to every trading instrument are found in the table below:

  • * If equity for the self trade account is less than 20 EUR or equivalent in foreign currency, the account may be blocked by Dukascopy Europe.

Minimum margin requirements

In order to protect clients from incurring liability above their equity and protect Dukascopy Europe from associated risks, the following minimum margin policy applies: The minimum equity requirement for the self-trading account is 20 EUR. For accounts with different base currency the minimum amount of equity is calculated at the corresponding rate of the latest settlement. All open positions may be closed and the account may be blocked should the equity on the account reach the minimum margin requirement.

The minimum margin required to open a position depends on the leverage applicable to the trading instrument and current market prices.

Use of leverage

The Use of Leverage is an indicator showing how much of the collateral is currently used by the exposure on the trading account. It is displayed in percentage in real-time and calculated as follows:

Use of leverage
=
Used Margin*
Equity
x
100%
  • * Note that the Used Margin equals to the exposure divided by leverage

Example:

Position of 1 mio EUR/USD 1.2000
Exposure on the account USD 1'200'000
Profit and losses 0
Leverage authorized for the account 1:30
Equity USD 100'000

Used Margin = Exposure on the account / Leverage = USD 1'200'000 / 30 = USD 40'000
Use of leverage = Used Margin / Equity = 40'000 / 100'000 = 40%

Margin call and margin cut policy

Margin call (use of leverage >100%) means a situation where the margin requirements do not allow the client to increase exposure on his account. The client may only close the existing unhedged positions or hedge current positions in order to reduce exposure. Despite the margin call level being reached, the positions will not be closed automatically. The automated system will cancel all placed bid/offer orders that can increase the exposure.

Margin cut or cut-off level (use of leverage ≥ 200%) - if the use of leverage reaches or exceeds 200%, Dukascopy Europe has the right (but not the obligation) to fully reduce the client's exposure by closing existing positions and cancelling pending orders.

Use of leverage Description
0% No exposure
< 100% Normal status
≥100% Margin call: trader is not able to increase exposure on the account if the use of leverage is more than 100%
≥200% Margin cut: system automatically closes all existing positions and cancels pending orders

Stock CFD Maximum Instrument Exposure

Maximum exposure per single stock CFD is 100,000 USD or equivalent in other currencies. Clients may request to increase maximum exposure to 250,000 USD, in this case leverage will be reduced to 1:2 from default setting of 1:5.

Market Maximum exposure
for a share CFD
Austria 100,000 EUR
Belgium 100,000 EUR
Denmark 750,000 DKK
Finland 100,000 EUR
France 100,000 EUR
Germany 100,000 EUR
Hong Kong 780,000 HKD
Japan 10,000,000 JPY
Mexico 100,000 USD equivalent
Netherlands 100,000 EUR
Norway 900,000 NOK
Portugal 100,000 EUR
Spain 100,000 EUR
Sweden 950,000 SEK
Switzerland 100,000 CHF
UK 90,000 GBP
US 100,000 USD

Maximum instrument exposure

Maximum net exposure of each currency pair on one trading account is limited to a position of 15 million of primary currency with an exception for HKD/JPY, USD/CNH and USD/MXN which max exposure is limited to 5 million of primary currency and EUR/PLN, TRY/JPY, USD/PLN, CAD/HKD, EUR/CZK, ER/DKK, EUR/HKD, EUR/HUF, EUR/TRY, USD/CZK, USD/DKK, USD/HKD, USD/HUF, USD/ILS, USD/RON, USD/THB and USD/TRY which max exposure is limited to 1 million of primary currency. For precious metals and CFD maximum net exposure is specified in the table below:

Instrument Maximum exposure in contracts (for CFDs) /
Oz (for precious metals)
ADA/USD30'000 USD equivalent
AUS.IDX/AUD750
BCH/USD50'000 USD equivalent
BRENT.CMD/USD650
BTC/USD100'000 USD equivalent
BUND.TR/EUR10'000
CHE.IDX/CHF350
CHI.IDX/USD200
COCOA.CMD/USD225
COFFEE.CMD/USX940'000
COPPER.CMD/USD1 mio USD equivalent
COTTON.CMD/USX685'000
DEU.IDX/EUR250
DIESEL.CMD/USD1'800
DOLLAR.IDX/USD25'000
DSH/USD30'000 USD equivalent
EOS/USD30'000 USD equivalent
ESP.IDX/EUR300
ETH/USD100'000 USD equivalent
EUS.IDX/EUR900
FRA.IDX/EUR500
GAS.CMD/USD4'500
GBR.IDX/GBP350
HKG.IDX/HKD1'000
ITA.IDX/EUR1 mio EUR equivalent
JPN.IDX/JPY20'000
LIGHT.CMD/USD650
LTC/USD50'000 USD equivalent
NLD.IDX/EUR4'550
OJUICE.CMD/USX410'000
PLN.IDX/PLN1'545
SGD.IDX/SGD11'220
SOA.IDX/ZAR2'000'000 USD equivalent
SOYBEAN.CMD/USX223'500
SUGAR.CMD/USD1'430
TRX/USD30'000 USD equivalent
USA30.IDX/USD100
USA500.IDX/USD1'000
USATECH.IDX/USD300
USSC2000.IDX/USD2'000
USTBOND.TR/USD10'000
VOL.IDX/USD100'000 USD equivalent
XAG/USD40'000
XAU/USD1'500
XLM/USD50'000 USD equivalent
XPD.CMD/USD90
AVE/USD30'000 USD equivalent
BAT/USD30'000 USD equivalent
CMP/USD30'000 USD equivalent
ENJ/USD30'000 USD equivalent
LNK/USD30'000 USD equivalent
MAT/USD30'000 USD equivalent
MKR/USD30'000 USD equivalent
UNI/USD30'000 USD equivalent
XPT.CMD/USD315
YFI/USD30'000 USD equivalent

Clients may request to waive/increase the maximum exposure limit.

In this case the account leverage and leverage on particular instruments will be reduced.

Risk disclosure

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. It is highly recommended to maintain the use of leverage at normal levels. The client must always keep in mind that margin trading increases potential loss, as well as potential profit, and invested funds can quickly suffer losses in situations where the market prices exhibit strong volatility, potentially creating an adverse environment for the highly leveraged participant. The client shall be solely responsible for maintaining sufficient margin in relation to the existing positions.

To learn more about Dukascopy Europe ECN Accounts, please write us: send us a message, call us: +371 67 399 000 or alternatively ask for a call-back.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.59% of retail investor accounts lose money when trading CFDs with this provider. Show more You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Show less