Trade Example

 
Assuming you place a cash margin at the following leverage ratio to maintain an open position of GBP / USD, the exchange rate movement of GBP / USD would affect your profit and loss as follows:
FX-MT limit: USD1,000,000
FX-MT limit actually utilised: USD900,000
Cash margin: USD80,000
Leveraged ratio: 12.5 times (8%)
You buy GBP / USD: GBP500,000 at 1.8000
(equivalent to USD 900,000)
 
Calculation of margin level:
(Cash margin + / - Profit / Loss) x 100%
FX-MT limit actually utilised in USD
 
Exchange rate
(GBP / USD)
Profit / Loss
(USD)
Margin level Condition
1.8200 10,000 10.0% Floating profit
1.8000 0 8% Breakeven point
1.7300 -35,000 5% Top up margin
1.6940 -53,000 3% Cut loss, close out
1.6700 -65,000 1.67% Floating loss