OANDA fxTrade Margin Rules

 

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United States

Avoid margin closeouts. Know about margin and how it works.

The OANDA fxTrade platform supports margin trading, which means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you have an equal opportunity to incur significant losses in your account. It is a good practice to utilize stop loss orders to limit potential losses when utilizing leverage. Stop Loss and Take Profit orders are not guaranteed; gaps in market pricing may cause your Stop Loss orders to be filled at a less advantageous price, or your Take Profit orders to be filled at a more advantageous price than the level you specify.

What is Margin?

Margin: A good faith deposit or performance bond. In leveraged trading, the margin amount is held in deposit while the trade is open. The amount of margin required to enter a trade is determined by the rules discussed below. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the Margin Available in your account will limit the size of the positions you can open.

Initial Margin: The initial deposit amount held in deposit when a trade is opened. The amount of margin required depends on the currencies being traded.

Leverage: The reciprocal of margin. For example 2% margin is the same as 50:1 leverage. The maximum leverage allowed is determined by the regulators in each country. Clients and OANDA may choose to be conservative and limit leverage utilized to lower levels than allowed by the regulators.

Maintenance Margin: The minimum amount of margin equity required to be maintained in an account. This value is lower than the Initial Margin.

Margin Call: When losing positions result in account equity falling below the maintenance margin measured at 4:00PM ET daily, you will receive a margin call alert by email requiring you to deposit additional funds or close open positions so as to return your account equity to the Initial Margin value. An account whose value rises above the initial margin level during the trading day but falls below the maintenance margin level at the 4:00 PM ET measurement will be issued a margin call as a result of that measurement. A margin call is resolved only if the account margin is above the initial margin requirement at 4:00 PM ET.

OANDA will send daily margin call emails to accounts that fall below margin requirements at 4:00 PM ET. When an account remains undermargined for 2 consecutive trading days, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. Any remaining open positions will automatically close at the current fxTrade rate when the markets for those instruments re-open.

Liquidation Margin: The Liquidation Margin is equal to 50% of the Initial Margin.

Margin Closeout: If your account falls below the Liquidation Margin level, all of your open positions will be immediately liquidated. The fxTrade platform will try to alert customers who are signed in to the fxTrade platform when the Margin Closeout Value falls within 5% of a margin closeout, and again when the Margin Closeout Value falls within 2.5% of a margin closeout. When the Margin Closeout Value declines to half, or less than half, of the Margin Used, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined.

Note: in a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the "Margin Closeout Percent" field in the Account Summary of the fxTrade user interface. The closer the Margin Closeout Percent is to 100%, the closer you are to a margin closeout.


OANDA's Margin Requirements

Governed by the National Futures Association (NFA), OANDA Corporation establishes margin rates and maximum leverage at their discretion.

See the OANDA Corporation margin rates list.

What Happens with a Margin Closeout?

You must maintain sufficient margin in your account to support your open positions. You are responsible for monitoring your account to prevent margin closeouts.

A margin closeout will be triggered in the following circumstances:

  • When the Margin Closeout Value declines to half, or less than half, of the Margin Used. The fxTrade platform will try to alert customers who are signed in to the fxTrade platform when the Margin Closeout Value falls within 5% of a margin closeout, and again when the Margin Closeout Value falls within 2.5% of a margin closeout. When the Margin Closeout Value declines to half, or less than half, of the Margin Used, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined.

Please note: in a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the "Margin Closeout Percent" field in the Account Summary of the fxTrade user interface. The closer the Margin Closeout Percent is to 100%, the closer you are to a margin closeout.

  • OANDA will send daily emails to accounts that fall below margin requirements at 4 p.m. Eastern time. When an account remains undermargined for 2 consecutive trading days, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. Any remaining open positions will automatically close at the current fxTrade rate when the markets for those instruments re-open.

For example, if your account remains undermargined, starting on Monday before 4 p.m., an automatic margin closeout will occur on Wednesday at 4 p.m. unless a margin closeout occurs earlier due to the Margin Closeout Value declining to half, or less than half, of the Margin Used. Saturday and Sunday do not count towards the 2 consecutive days as trading is not available on weekends (see OANDA Hours of Operation). If the account recovers before the end of 2 consecutive trading days by meeting the margin requirements at the 4:00 PM ET daily margin check, a new count will start again from the day the account falls below margin requirements again. For example, if your account is undermargined on Monday at 4 p.m., recovers and is adequately margined on Tuesday at 4 p.m., and then falls below margin requirements again on Wednesday before 4 p.m. and continuously remains undermargined, a margin closeout will occur 2 days later on Friday starting at 4 p.m.

See more detailed information on how to calculate margin.

How to Avoid Margin Closeouts

Take proactive measures to avoid getting a margin closeout on your account. For example,

  • Monitor the status of your account continuously.
  • Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off.

Note: If you choose a lower leverage, constant monitoring is still required to avoid margin closeouts.

  • Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. (Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss.). Stop Loss and Take Profit orders are not guaranteed; gaps in market pricing may cause your Stop Loss orders to be filled at a less advantageous price, or your Take Profit orders to be filled at a more advantageous price than the level you specify.

Note: Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure.

If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:

  • Incrementally reduce the size of your positions as you get close to a margin closeout. (fxTrade allows you to trade in arbitrary units, as opposed to fixed lots, which makes this simple to do.)

For example, if you get a margin warning, reduce the size of all your open positions by 10%. This effectively lowers the amount of margin required, giving you more breathing room.

  • Close individual positions to reduce the amount of margin required.
  • If you are using a lower leverage, you can increase the leverage on your account as a last resort.
  • Transfer additional funds into the account from another subaccount.
  • Add funds to the account. Note, however, that the time it takes to add funds could mean your funds arrive too late.

Canada

Avoid margin closeouts. Know about margin and how it works.

The OANDA fxTrade platform supports margin trading, which means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can strongly leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you can potentially incur significant losses in your margin capital very quickly.

What is Margin?

To ensure you can cover any losses you might incur on your positions, OANDA requires sufficient collateral. This collateral is typically referred to as margin. Although there is no minimum deposit required to open an fxTrade account with OANDA, the Margin Available in your account will limit the size of the positions you can open.

The term leverage is often used to describe the margin requirements. For example, leverage of 50:1 corresponds to a margin requirement of 2% (1 divided by 50 is 0.02 or 2%). A 2% margin requirement means that, if you wish to open a new position, then you must have 2% of the size of that position available as margin. Another way of saying the same thing: for each dollar of margin available you can make a $50 dollar trade.

Nobody Profits from Margin Closeouts!

Some people erroneously believe that OANDA might benefit from a client getting a margin closeout. The truth is that OANDA does not benefit at all. Traders who lose money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading.

The bottom line is that each margin closeout harms a client and it harms OANDA. But it also protects clients from greater losses.

OANDA Canada Margin Requirements

The Investment Industry Regulatory Organization of Canada (IIROC) establishes margin rates, which may vary from time to time. Margin requirements also vary given the base currency of your account.

See the Canadian margin rates list.

How Margin is Calculated

When you have open trades for many different currency pairs, your account’s margin requirement is calculated by weighting the margin requirements for the various trades at their respective sizes and rates.

If this calculation is less than the margin requirement for the leverage set on your account, it takes precedence (if it is higher, then your default leverage is used).

For example, if you are trading pairs with a minimum 3% margin rate (or 33:1 leverage) and you’ve set your leverage at 10:1, the required margin will be 10% rather than the 3% minimum required by regulation.

See more detailed information on how to calculate margins.

What Happens with a Margin Closeout?

You must maintain sufficient margin in your account to support your open positions. You are responsible for monitoring your account to prevent margin closeouts.

A margin closeout will be triggered in the following circumstances:

  • When the Margin Closeout Value declines to half, or less than half, of the Margin Used. The fxTrade platform will try to alert customers who are signed in to the fxTrade platform when the Margin Closeout Value falls within 5% of a margin closeout, and again when the Margin Closeout Value falls within 2.5% of a margin closeout. When the Margin Closeout Value declines to half, or less than half, of the Margin Used, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined.

Please note: in a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the "Margin Closeout Percent" field in the Account Summary of the fxTrade user interface. The closer the Margin Closeout Percent is to 100%, the closer you are to a margin closeout.

  • OANDA will send daily emails to accounts that fall below margin requirements at 4 p.m. Eastern time. When an account remains undermargined for 7 consecutive trading days, all tradable open positions in the account will automatically close using the current fxTrade rates at the time of closing. Any remaining open positions will automatically close at the current fxTrade rate when the markets for those instruments re-open.

For example, if your account remains undermargined, starting on Monday before 4 p.m., an automatic margin closeout will occur on the following Tuesday at 4 p.m.. It is still possible for an account to also receive a margin closeout earlier due to the Margin Closeout Value declining to half, or less than half, of the Margin Used. Saturday and Sunday do not count towards the 7 consecutive days as trading is not available on weekends (see OANDA Hours of Operation). If the account recovers by 4 p.m. on a trading day, before the end of 7 consecutive trading days, a new count will start again from the day the account falls below margin requirements. For example, if your account is undermargined on Monday at 4 p.m., recovers and is adequately margined on Wednesday at 4 p.m., and then falls below margin requirements again on Friday before 4 p.m. and continuously remains undermargined, a margin closeout will occur 10 days later on Monday starting at 4 p.m.

See more detailed information on how to calculate margin.

How to Avoid Margin Closeouts

Take proactive measures to avoid getting a margin closeout on your account. For example,

  • Monitor the status of your account continuously.
  • Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off.

Note: If you choose a lower leverage, constant monitoring is still required to avoid margin closeouts.

  • Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. (Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss.)

Note: Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure.

If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:

  • Incrementally reduce the size of your positions as you get close to a margin closeout. (fxTrade allows you to trade in arbitrary units, as opposed to fixed lots, which makes this simple to do.)
  • Close individual positions to reduce the amount of margin required.
  • If you are using a lower leverage, you can increase the leverage on your account as a last resort.
  • Transfer additional funds into the account from another subaccount.
  • Add funds to the account. Note, however, that the time it takes to add funds could mean your funds arrive too late.

Europe

Avoid margin closeouts. Know about margin and how it works.

The OANDA fxTrade platform supports margin trading, which means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can strongly leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you can potentially incur significant losses in your margin capital very quickly. You may lose more than you invest.

What is Margin?

To ensure you can cover any losses you might incur on your positions, OANDA requires sufficient collateral. This collateral is typically referred to as margin. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open.

The term leverage is often used to describe the margin requirements. For example, leverage of 50:1 corresponds to a margin requirement of 2% (1 divided by 50 is 0.02 or 2%). A 2% margin requirement means that, if you wish to open a new position, then you must have 2% of the size of that position available as margin. Another way of saying the same thing: for each dollar margin available you can make a 50 dollar trade.

OANDA Europe's Margin Requirements

OANDA fxTrade requires a specific margin to be available in your account for each currency pair you trade in. Below is the list of margin rates applicable for each currency pair.

See the OANDA Europe margin rates list.

What Happens with a Margin Closeout?

You must maintain sufficient margin in your account to support your open positions. You are responsible for monitoring your account to prevent margin closeouts.

A margin closeout will be triggered in the following circumstances:

When the Margin Closeout Value declines to half, or less than half, of the Margin Used. The fxTrade platform will try to alert customers who are signed in to the fxTrade platform when the Margin Closeout Value falls within 5% of a margin closeout, and again when the Margin Closeout Value falls within 2.5% of a margin closeout.

Please note: in a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the "Margin Closeout Percent" field in the Account Summary of the fxTrade user interface. The closer the Margin Closeout Percent is to 100%, the closer you are to a margin closeout.

See more detailed information on how to calculate margin.

If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined. Please see OANDA’s Hours of Operation for more information.

How to Avoid Margin Closeouts

Take proactive measures to avoid getting a margin closeout on your account. For example,

  • Monitor the status of your account continuously.
  • Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off.
  • Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. (Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss.)

Note: Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure.

If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:

  • Incrementally reduce the size of your positions as you get close to a margin closeout. (fxTrade allows you to trade in arbitrary units, as opposed to fixed lots, which makes this simple to do.)

For example, if you get a margin warning, reduce the size of all your open positions by 10%. This effectively lowers the amount of margin required, giving you more breathing room.

  • Close individual positions to reduce the amount of margin required.
  • If you are using a lower leverage, you can increase the leverage on your account as a last resort.
  • Transfer additional funds into your account. Note, however, that the time it takes to add funds could mean your funds arrive too late.

Asia Pacific

Avoid margin closeouts. Know about margin and how it works.

The OANDA fxTrade platform supports margin trading, which means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can strongly leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you can potentially incur significant losses in your margin capital very quickly. You may lose more than you invest.

What is Margin?

To ensure you can cover any losses you might incur on your positions, OANDA requires sufficient collateral. This collateral is typically referred to as margin. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open and will affect when you receive a margin alert and possible margin closeout. A margin closeout is the situation when the fxTrade platform automatically closes all of your open positions in the affected account, to significantly decrease the probability of losing more than the amount of collateral in your account.

The term leverage is often used to describe the margin requirements. A leverage of 50:1 corresponds to a margin requirement of 2% (1 divided by 50 is 0.02 or 2%). A 2% margin requirement means that, if you wish to open a new position, then you must have 2% of the size of that position available as margin. Another way of saying the same thing: for each dollar margin available you can make a 50 dollar trade.

OANDA Asia Pacific's Margin Requirements

OANDA fxTrade requires a specific margin to be available in your account for each currency pair you trade in. Below is the list of margin rates applicable for each currency pair.

See the OANDA Asia Pacific margin rates list.

How Margin is Calculated

When you have open trades for many different currency pairs, your account’s margin requirement is calculated by weighting the margin requirements for the various trades at their respective size and rates.

If this calculation is less than the margin requirement for the leverage set on your account, it takes precedence (if it is higher, then your default leverage is used).

For example, if you are trading pairs with a minimum 3% margin rate (or 33:1 leverage) and you’ve set your leverage at 10:1, the required margin will be 10% rather than the 3% minimum required by regulation.

See more detailed information on how to calculate margin.

What Happens with a Margin Closeout?

You must maintain sufficient margin in your account to support your open positions. You are responsible for monitoring your account to prevent margin closeouts.

A margin closeout will be triggered when the Margin Closeout Value declines to half, or less than half, of the Margin Used. The fxTrade platform will try to alert customers who are signed in to the fxTrade platform when the Margin Closeout Value falls within 5% of a margin closeout, and again when the Margin Closeout Value falls within 2.5% of a margin closeout. In addition, at 4 a.m. Singapore time each trading day, OANDA will send daily emails to accounts that fall below margin requirements for their aggregate open positions and are at risk of approaching a margin closeout.

Please note: in a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the "Margin Closeout Percent" field in the Account Summary of the fxTrade user interface. The closer the Margin Closeout Percent is to 100%, the closer you are to a margin closeout.

If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined.

How to Avoid Margin Closeouts

Take proactive measures to avoid getting a margin closeout on your account. For example,

  • Monitor the status of your account continuously.
  • Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off.
  • Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. (Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss.)

Note: Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure.

If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:

  • Incrementally reduce the size of your positions as you get close to a margin closeout. (fxTrade allows you to trade in arbitrary units, as opposed to fixed lots, which makes this simple to do.)
  • Close individual positions to reduce the amount of margin required.
  • If you are using a lower leverage, you can increase the leverage on your account as a last resort.
  • Transfer additional funds into the account from another subaccount.
  • Add funds to the account. Note, however, that the time it takes to add funds could mean your funds arrive too late.


Nobody Profits from Margin Closeouts!

Some people erroneously believe that OANDA might benefit from a client getting a margin closeout. The truth is that OANDA does not benefit at all. Traders who lose money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading.

The bottom line is that each margin closeout harms a client and it harms OANDA. But it also protects clients from greater losses.


Australia

Avoid margin closeouts. Know about margin and how it works.

The OANDA fxTrade platform supports margin trading, which means you can enter into positions larger than your account balance. One advantage of margin-based trading is that you can strongly leverage the funds in your account and potentially generate large profits relative to the amount invested. The downside is that you can potentially incur significant losses in your margin capital very quickly. You may lose more than you invest.

What is Margin?

To ensure you can cover any losses you might incur on your positions, OANDA requires sufficient collateral. This collateral is typically referred to as margin. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open and will affect when you receive a margin alert and possible margin closeout. A margin closeout is the situation when the fxTrade platform automatically closes ALL of your open positions in the affected account, to significantly decrease the probability of losing more than the amount of collateral in your account.

The term leverage is often used to describe the margin requirements. A leverage of 50:1 corresponds to a margin requirement of 2% (1 divided by 50 is 0.02 or 2%). A 2% margin requirement means that, if you wish to open a new position, then you must have 2% of the size of that position available as margin. Another way of saying the same thing: for each dollar margin available you can make a 50 dollar trade.

OANDA offers a maximum leverage of 100:1, but we recommend clients cap their leverage at 20:1 or lower.

OANDA Australia's Margin Requirements

OANDA fxTrade requires a specific margin to be available in your account for each currency pair or CFD you trade in. Below you can find the list of margin rates applicable for each currency pair or CFD.

See the OANDA Australia margin rates list.

How Margin is Calculated

When you have open trades for many different currency pairs, your account’s margin requirement is calculated by weighting the margin requirements for the various trades at their respective size and rates.

If this calculation is less than the margin requirement for the leverage set on your account, it takes precedence (if it is higher, then your default leverage is used).

For example, if you are trading pairs with a minimum 3% margin rate (or 33:1 leverage) and you’ve set your leverage at 10:1, the required margin will be 10% rather than the 3% minimum required by regulation.

See more detailed information on how to calculate margin.

What Happens with a Margin Closeout?

You must maintain sufficient margin in your account to support your open positions. You are responsible for monitoring your account to prevent margin closeouts.

A margin closeout will be triggered when the Margin Closeout Value declines to half, or less than half, of the Margin Used. The fxTrade platform will try to alert customers who are signed in to the fxTrade platform when the Margin Closeout Value falls within 5% of a margin closeout, and again when the Margin Closeout Value falls within 2.5% of a margin closeout. 

Please note: in a fast moving market, there may be little time between warnings, or there may not be sufficient time to warn you at all. Be mindful of the “Margin Closeout Percent” field in the Account Summary of the fxTrade user interface. The closer the Margin Closeout Percent is to 100%, the closer you are to a margin closeout.

If trading is unavailable for certain open positions at the time of the margin closeout, those positions will remain open and the fxTrade platform will continue to monitor your margin requirements. When the markets reopen for the remaining open positions, another margin closeout may occur if your account remains undermargined. For more information, please see OANDA’s Hours of Operation.

How to Avoid Margin Closeouts

Take proactive measures to avoid getting a margin closeout on your account. For example,

  • Monitor the status of your account continuously.
  • Use a lower leverage so you can impose a higher margin requirement on yourself. This way, you will not be tempted to enter into positions beyond your comfortable leverage level. You will also be aware of a potential margin closeout sooner, and be able to increase leverage as a last resort to head it off.
  • Specify a stop-loss order for each open trade to limit downside risk. You can specify the stop-loss rate at the time you issue a trade, or add a stop-loss order at any time for any open trade. You can also change your stop-loss orders at any time to take current market prices or other conditions into account. (Click on an open trade in the "Trades" table, then click "Modify" in the pop-up window to change the stop-loss.)

Note: Your trade is closed at the current fxTrade rate, which may vary from your stop loss price -- especially when trading resumes after periods of market closure.
If you happen to be close to a margin closeout, the unique features of the fxTrade platform provide some simple strategies to avoid it:

  • Incrementally reduce the size of your positions as you get close to a margin closeout. (fxTrade allows you to trade in arbitrary units, as opposed to fixed lots, which makes this simple to do.)
  • Close individual positions to reduce the amount of margin required.
  • If you are using a lower leverage, you can increase the leverage on your account as a last resort.
  • Transfer additional funds into the account from another subaccount.
  • Add funds to the account. Note, however, that the time it takes to add funds could mean your funds arrive too late.


Nobody Profits from Margin Closeouts!

Some people erroneously believe that OANDA might benefit from a client getting a margin closeout. The truth is that OANDA does not benefit at all. Traders who lose money have less money to use for trading and may reduce their trading activity. As a company, OANDA benefits most when its customers are trading.

The bottom line is that each margin closeout harms a client and it harms OANDA. But it also protects clients from greater losses.

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