CXM's Leverage Policy

This Policy explains how leverage and margin are applied across all account types offered by CXM (“the Firm”, “we”, “us”). It applies to all clients and should be reviewed before trading. Leverage is adjusted automatically based on account equity, instrument class and market conditions, as set out below. The margin and automatic stop-out levels described in this Policy operate to manage client exposure before an account balance can turn negative; where a balance nevertheless turns negative, the Firm’s Negative Balance Protection Policy applies to eligible retail clients.

What is leverage?

Leverage increases buying power by allowing a trader to control a larger position than the funds deposited or held as margin. It is expressed as the ratio of the notional value of a trade to its margin requirement — for example, 1:500, 1:100 or Unlimited:1. Higher leverage increases both potential return and potential loss.

Unlimited leverage requires only a negligible margin, allowing more open positions and a wider range of strategies. It is available to clients holding a Standard or ECN account. CXM Trader, Standard Bonus, CENT, Zero and GOLD accounts are not eligible.

An account may become eligible for Unlimited Leverage once it has executed a minimum of two (2) trades. Clients may apply from within the secure Member Area, under Profile in the Trader’s Menu. Once Unlimited Leverage is active, leverage-change requests on that account will not be accepted.

Unlimited Leverage is not available on all instruments — including most exotic pairs, cryptocurrencies, energies, base metals, baskets, stocks and indices — which are held at their fixed margin requirements.

On the MT5 platform, cryptocurrency leverage is tiered by the net open position (“NOP”) in each instrument. This tiered schedule is the sole exception to the 1:10 default shown in the Cryptos column of the account tables above, and it applies only to the five major pairs listed below. On those pairs, clients may trade up to 100:1 up to 1 lot; once the NOP in that instrument exceeds 1 lot, risk-adding trades in that instrument only are margined at 10:1. The higher margin requirement applies only to trades executed while the NOP exceeds 1 lot; earlier trades are unaffected. All other cryptocurrencies remain capped at the 1:10 default on every account type and platform.

News events

Leverage is capped at 200:1 on new trades opened five minutes before, to one minute after, a significant news event, then restored to the account’s initial leverage once the window closes. Positions opened before the event are unaffected, as are products with fixed margin requirements.

End-of-week trading

Leverage is capped at 100:1 on new trades opened within the last hour before the Friday session close, then restored to the account’s initial leverage at the start of the next trading day. Positions opened before the window, and products with fixed margin requirements, are unaffected.

End-of-day trading (EOD)

Leverage is capped at 100:1 on new trades in all instruments opened approximately ten minutes before the daily session close, then restored at the start of the next trading day. Positions opened before the window, and products with fixed margin requirements, are unaffected.

The Firm reserves the right to introduce similar temporary leverage adjustments for other Financial Instruments where market conditions, liquidity providers or operational risk considerations make such adjustments reasonably necessary.

The Firm may amend this Policy from time to time in response to market or liquidity conditions. The current version is published on www.cxm.com. Where the change is material, the Firm will notify affected clients.