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Important New Margin Requirements for All FXCM Clients Note: Micro Accounts are cov
Important New Margin Requirements for All FXCM Clients
Note: Micro Accounts are covered in a separate release
On Sunday, November 22, FXCM account(s) held with FXCM LLC (FXCM) will be subject to new margin requirements. These changes are taking place to comply with new National Futures Association (NFA) margin rules. The effective date of the new rules is November 30; however, FXCM will be applying the new margin requirements one week early.
On Sunday, November 22, FXCM LTD will be making changes to existing margin requirements for all account holders as well. Margin requirements will be increasing, particularly for currency pairs with EUR or GBP as the base currency. FXCM’s experience in Hong Kong, where significantly lower leverage levels (higher margins) are mandated by law, suggests that trading with lower leverage may assist clients in trading more successfully over an extended time period. The new margin requirements are intended to reduce risk by restricting traders from using excessive leverage.
Based on price fluctuations, all margin requirements are subject to change without notice and will be adjusted up or down in increments of $10 for USD denominated accounts. At present, FXCM does not anticipate that margin requirements will have to be changed more than once a month. Up-to-date margin requirements are and will continue to be displayed in the “Simplified Dealing Rates” window of the trading platform by currency pair.
** VIEW A FULL LIST OF THE NEW MARGIN REQUIREMENTS BY ACCOUNT DENOMINATION
FXCM LLC: http://www.fxcm.com/forex-margin.html FXCM LTD: http://www.fxcm.co.uk/forex-margin.jsp
Important Notice:
All positions and orders established after November 22 will be subject to the above margin requirements.
Additionally, open trades and active orders initiated prior to November 22 will also be subject to the new margin requirements.
We recommend watching this video to determine if you have sufficient margin to prevent positions from being liquidated.
FXCM LLC: https://admin.na6.acrobat.com/_a205571165/p18758888/
FXCM LTD: https://admin.na6.acrobat.com/_a205571165/p50778070/
Visit our Online Margin Help Center for more detailed information on the new NFA rule change, frequently asked questions and steps you can take to prepare for this change.
FXCM LLC: http://forexforums.dailyfx.com/new-fxcm-llc-margin-requirements/
FXCM LTD: http://forexforums.dailyfx.com/new-fxcm-ltd-margin-requirements/
Why Lower Leverage Is Important
The combination of high leverage and volatile currencies can be extremely dangerous. Accounts that trade volatile pairs, such as GBP/USD and GBP/JPY, with the maximum amount of leverage tend to have less positive performance. On the other hand, traders that focus on less volatile currency pairs, such as USD/JPY and AUD/USD, and use more conservative leverage may benefit from the reduced risk that accompanies trading on lower leverage. When trading volatile currencies with high leverage, one bad trade can wipe out the profits from many good trades. By trading will less leverage, a trader can reduce the risk of a big drawdown from one bad trade.
If you have any questions about the new regulations, or their effect on your risk management, please don’t hesitate to contact us.
FXCM Holdings LLC Facts
As of June 2009
• FXCM Holdings LLC has over $100 million in capital.
• More than 150,000 live accounts trade on platforms offered by FXCM.
• An average of $365 billion in notional volume is traded each month on platforms offered by FXCM.
• More than $600 million in customer funds trading on platforms offered by FXCM.
Risk Warning: Currency trading involves substantial risk of loss, read full disclosure.
Important New Margin Requirements for All FXCM Clients
Note: Micro Accounts are covered in a separate release
On Sunday, November 22, FXCM account(s) held with FXCM LLC (FXCM) will be subject to new margin requirements. These changes are taking place to comply with new National Futures Association (NFA) margin rules. The effective date of the new rules is November 30; however, FXCM will be applying the new margin requirements one week early.
On Sunday, November 22, FXCM LTD will be making changes to existing margin requirements for all account holders as well. Margin requirements will be increasing, particularly for currency pairs with EUR or GBP as the base currency. FXCM’s experience in Hong Kong, where significantly lower leverage levels (higher margins) are mandated by law, suggests that trading with lower leverage may assist clients in trading more successfully over an extended time period. The new margin requirements are intended to reduce risk by restricting traders from using excessive leverage.
Based on price fluctuations, all margin requirements are subject to change without notice and will be adjusted up or down in increments of $10 for USD denominated accounts. At present, FXCM does not anticipate that margin requirements will have to be changed more than once a month. Up-to-date margin requirements are and will continue to be displayed in the “Simplified Dealing Rates” window of the trading platform by currency pair.
** VIEW A FULL LIST OF THE NEW MARGIN REQUIREMENTS BY ACCOUNT DENOMINATION
FXCM LLC: http://www.fxcm.com/forex-margin.html FXCM LTD: http://www.fxcm.co.uk/forex-margin.jsp
Important Notice:
All positions and orders established after November 22 will be subject to the above margin requirements.
Additionally, open trades and active orders initiated prior to November 22 will also be subject to the new margin requirements.
We recommend watching this video to determine if you have sufficient margin to prevent positions from being liquidated.
FXCM LLC: https://admin.na6.acrobat.com/_a205571165/p18758888/
FXCM LTD: https://admin.na6.acrobat.com/_a205571165/p50778070/
Visit our Online Margin Help Center for more detailed information on the new NFA rule change, frequently asked questions and steps you can take to prepare for this change.
FXCM LLC: http://forexforums.dailyfx.com/new-fxcm-llc-margin-requirements/
FXCM LTD: http://forexforums.dailyfx.com/new-fxcm-ltd-margin-requirements/
Why Lower Leverage Is Important
The combination of high leverage and volatile currencies can be extremely dangerous. Accounts that trade volatile pairs, such as GBP/USD and GBP/JPY, with the maximum amount of leverage tend to have less positive performance. On the other hand, traders that focus on less volatile currency pairs, such as USD/JPY and AUD/USD, and use more conservative leverage may benefit from the reduced risk that accompanies trading on lower leverage. When trading volatile currencies with high leverage, one bad trade can wipe out the profits from many good trades. By trading will less leverage, a trader can reduce the risk of a big drawdown from one bad trade.
If you have any questions about the new regulations, or their effect on your risk management, please don’t hesitate to contact us.
FXCM Holdings LLC Facts
As of June 2009
• FXCM Holdings LLC has over $100 million in capital.
• More than 150,000 live accounts trade on platforms offered by FXCM.
• An average of $365 billion in notional volume is traded each month on platforms offered by FXCM.
• More than $600 million in customer funds trading on platforms offered by FXCM.
Risk Warning: Currency trading involves substantial risk of loss, read full disclosure.