What is Margin Accounts and Leverage

Leverage and Margin

One attractive feature of CFDs is that Leverage. With CFD trading, you do not buy the base value, but deposit one for each trading position Security deposit at comdirect's trading partner. This security deposit will Margin called.

With CFD trading, in contrast to direct investment, less capital is tied up in your trading positions. This means that you have the untied capital available for further trading positions. The amount of the margin depends on the asset class of the underlying asset.

example

The margin when trading index CFDs such as the DAX, Nikkei or Dow Jones is 5%. If, on the other hand, you trade share CFDs, a margin of 20% is required, for commodities such as gold it is 5%. This allows you to leverage your invested capital up to 20 times, depending on the CFD. If you have an account with 10,000 euros, a margin of 5% allows you to move a capital of 200,000 euros.

In the table you can see how much capital (margin in euros) you have to use for a position size of 10,000 euros.

Asset classMargin (%)leverMargin (EUR)Position size (EUR)
Indices

5

20

500

10.000
raw materials

10

10

1.000

10.000
shares

20

5

2.000

10.000

The margin rate varies depending on the asset class.