CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Trade only with money you can afford to lose.
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XM margin calculator: what leverage of up to 1000:1 does to your margin (South Africa)

Work out margin in one line, then see how far the market can move against you before your balance is gone.

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Min deposit $5 (Standard, Ultra Low)  ·  Up to 1000:1 (XM can change it)

Margin is the trade's value divided by leverage: one standard lot of EUR/USD at 1.0800 is worth $108,000, so it needs about $108 at 1000:1 and $1,080 at 100:1. Lower margin does not lower risk — a one-lot position still gains or loses about $10 for every pip, whatever the leverage.

Margin in one line

The numbers below use EUR/USD at an illustrative price of 1.0800 and a US-dollar account; swap in your own price and size.

Margin for 1 lot of EUR/USD at an illustrative price of 1.0800

LeveragePosition valueMargin needed
1000:1$108,000$108
500:1$108,000$216
200:1$108,000$540
100:1$108,000$1,080
30:1$108,000$3,600

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What margin is

In margin trading, the margin is the deposit your broker sets aside to keep a position open; leverage is the ratio between the position's value and that deposit. At 1000:1, every $1 of margin controls $1,000 of position.

Leverage changes the margin, not the loss per pip

On EUR/USD with a US-dollar account, 1 lot moves about $10 per pip, 0.10 lot about $1 and 0.01 lot about $0.10, whatever the leverage. With a $500 balance and one full lot open, a 50-pip move against you is roughly the whole balance.

High leverage lets that position open with very little margin, which is why small balances can disappear fast. In Retail Trader’s Ruin (2026), survival under higher CFD leverage became the binding problem for some popular rule families. CFDs magnify both gains and losses.

Working in rand

XM's account-types page quotes minimums in US dollars and says a deposit in another currency is shown as the equivalent. If you fund in rand, the dollar figures above also move with the USD/ZAR rate.

Money per pip on EUR/USD (US-dollar account)

Trade sizeUnitsAbout per pip
1 lot100,000$10
0.10 lot10,000$1
0.01 lot1,000$0.10

For pairs quoted in US dollars the pip value is fixed in dollars; for other pairs it moves with the exchange rate.

Frequently asked questions

Does higher leverage at XM cost more?
Leverage itself is not a fee; it changes how much margin a position needs. The risk grows because a small balance can control a large position: at 1000:1, one lot of EUR/USD needs about $108 of margin but still moves about $10 per pip.
Can XM change my leverage?
Yes. XM's client agreement says maximum leverage may be withdrawn or changed at any time without prior notice. Plan positions so that a lower leverage would not immediately put your account under margin pressure.