How USDCHF margin rew is calculated

Commercial Content Broker Support
1

Hello

I have written to xglobalm. support mailaddress 2 times never got the aswer. I made test account with 50EUR and 25:1.
They wrote me
Please note that with a leverage of 1:25 to open,

  • 0.01 lot GBPUSD, the margin requirement are 40 GBP, which equals to about 55.87 EUR
  • 0.01 lot USDCHF, the margin requirements are 160 USD, which equals to about 141.62 EUR
  • 0.01 EURUSD, where the leverage requirements will be 40 EUR.

Why USDCHF need 2.5x-3x times more accout balance?

Thanks.

2

Hello MadisM,

Thanks for reaching out here on the forum.

Due to the extreme movement of the CHF earlier this year the margin requirements on all CHF pairs have been increased exactly 4x that of all other standard currency pairs (except TRY pairs, which are 2x). This change was made to protect both our clients and our company in the event of any major moves following the Swiss National Bank dropping the EURCHF floor earlier this year.

In so far as your margin requirement calculations are concerned these are always calculated on the lot size and the base currency of the currency pair that is to be traded. These calculations are all listed in the contract specifications page on our website here, and can be found in the table under the column titled “Used margin per 1 lot traded (at 1:100 leverage)”.

If you have any more questions you can post them here on the forum.

Best regards,
Alex Eliades - XGLOBAL Markets official representative