CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.96% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How does Tiered Margin work on an FXCM MT4 account?

As of July 29th 2018 MT4 accounts with FXCM will utilize a different version of FXCM’s Tiered Margin because the MT4 platform handles the margin call (liquidation) process differently than FXCM’s Trading Station Platform.

Upon opening a position you will be required to set aside an initial entry margin as well as a maintenance margin. However, due to a platform limitation on MT4 there are no pop up notifications on the platform when your Free Margin is at zero or less.

While the Entry/Maintenance and Liquidation margin levels are the same as Trading Station accounts, clients trading with MT4 should ensure they understand three important figures within the platform:

  • [Equity] is the "floating" value of funds in the account, including profits and losses on open positions.
  • [Margin] is Used Maintenance Margin, this is the amount currently in use to maintain open positions. If the equity falls below 50% of Margin then the position floating the largest loss will be closed, this process is repeated if Equity reaches or remains below 50% of Margin.
  • [Free Margin] is Usable Maintenance Margin. When this value is at zero or less the Margin Warning is triggered and additional positions cannot be opened.