CFD Trading with Leverage

Trading with Leverage

CFDs are traded on margin. This means that you are able to leverage your investment by opening positions of larger size than the funds you have to place as margin collateral.

The margin is the amount reserved on your trading account to cover any potential losses from an open CFD position. Please also note that it is possible that a loss may exceed the required margin when trading on leverage.

Margin requirements vary from instrument to instrument and can be changed at any time to reflect market conditions. Clients will be notified in advance where possible for larger re-ratings or changing of margin requirements for very popular instruments.

Margin requirements by CFD type and instrument are always listed under the CFD Trading Conditions on the trading platforms but can also be seen below.

Please note that FAB Investing reserves the right to increase margin requirements for large position sizes, including client portfolios which are considered to be of very high risk or where market conditions require such increases.

It is your responsibility to ensure that the required margin collateral, as listed in the Account Summary on the trading platforms, is maintained at all times. If the funds in your account fall below this margin, you will be subject to a margin call where you must either:

  • Reduce the size of the open margin positions and/or
  • Provide more funds (margin collateral) to the trading account.

When the required margin exceeds your margin collateral, you are at risk of a stop-out. In such a circumstance, FAB Investing is entitled to close ALL your margin positions on your behalf.

Rating groups

We have sorted more than 8,800 online tradable CFDs in 8 different margin groups. Which margin group a CFD falls into depends on the market capitalisation, liquidity and volatility of the underlying asset.

The rating system for Stock Index Trackers and Single Stocks CFDs are as follows:

Rating Groups
RatingLeverage

Margin
requirement

Product /
Instrument

1 20:1 5%* Stock Index Trackers
2 10:1 10%* Single Stock CFD / ETF CFD
3 10:1 10%* Single Stock CFD / ETF CFD
4 6.67:1 15%* Single Stock CFD / ETF CFD
5 4:1 25% Single Stock CFD / ETF CFD
6 2:1 50% Single Stock CFD / ETF CFD
7 1.33:1 75% Single Stock CFD / ETF CFD
8 0 100% Single Stock CFD / ETF CFD

​*Leverage of 5:1 which is equivalent to 20% margin requirement and 10:1 (10% margin requirement) could also apply to some of the Stock Index Trackers and Single Stock CFD/ETF CFD.

For full details of the margin requirements, you may refer to the CFD's Available

Single Stock CFDs

The leverage available on Single Stock CFDs begin at 10:1 which corresponds to only 10% margin.

The rating system for Stock Index Trackers and Single Stocks CFDs are as follows:

Single Stocks CFDs
RatingLeverageMargin requirement
3 10:1 10%*
4 6.67:1 15%*
5 4:1 25%
6 2:1 50%
7 1.33:1 75%
8 0 100%

*Leverage of 5:1 which is equivalent to 20% margin requirement and 10:1 (10% margin requirement) could also apply to some of the Stock Index Trackers and Single Stock CFD/ETF CFD.

Commodity CFDs

The leverage for Commodities CFDs begins at 5:1 which corresponds to a margin requirement of 20%. 

Commodity CFDs
Instrument NameSymbol

Margin
Required

Leverage
METALS
Gold GOLD 20% 5:1
Silver SILVER 20% 5:1
Platinum PLATINUM 20% 5:1
Palladium PALLADIUM 20% 5:1
US Copper COPPERUS 20% 5:1
ENERGY
US Crude OILUS 20% 5:1
UK Crude OILUK 20% 5:1
Heating Oil HEATINGOIL 20% 5:1
Gasoline US GASOLINEUS 20% 5:1
Gas Oil GASOLINEUK 20% 5:1
US Natural Gas NATGAS 20% 5:1
CO2 Emissions EMISSIONS 20% 5:1
AGRICULTURE
Corn CORN 20% 5:1
Wheat WHEAT 20% 5:1
Soybeans SOYBEANS 20% 5:1
SOFTS
NY Sugar No. 11 SUGARNY 20% 5:1
NY Coffee COFFEE 20% 5:1
NY Cocoa COCOA 20% 5:1
MEATS
Live Cattle LIVECATTLE 20% 5:1

Forex CFDs

The leverage available for Forex CFDs is 5:1 equal to 20% in margin requirement.  

Forex CFD's
Instrument NameSymbol

Margin
requirement

Leverage

Euro / US Dollar EURUSDEC 20% 5:1
Euro / Japanese Yen​ EURJPYRY 20% 5:1
Euro / Swiss Franc​ EURCHFRF​ 20% 5:1
Euro /British Pound​ EURGBPRP​ 20% 5:1
British Pound / US Dollar GBPUSDBP​ 20% 5:1
Australian Dollar / US Dollar AUDUSDAD 20% 5:1
USD Index USDINDEX 20% 5:1

ETF / ETC CFDs

See under 'Single Stock CFDs'.

Risk Warning

Trading risks are magnified by leverage – losses can exceed your deposits. Trade only after you have acknowledged and accepted the risks. You should carefully consider whether trading in leveraged products is appropriate for you based on your financial circumstances. Please consider our Risk Warning and General Business Terms before trading with us.

Have more questions? Submit a request

0 Comments

Article is closed for comments.

Still haven't found what you're looking for? Just ask our friendly support team.