WHAT IS MY MARGIN REQUIREMENT?
Your margin requirement is the cash deposit that you require to maintain your existing exposure. When you place a trade you must have sufficient available equity to cover the margin costs, or requirement of that position. The margin requirement level must be maintained over and above any profit or losses on your account.
WHAT ARE THE MARGIN REQUIREMENTS FOR OUR PRODUCTS?
Margin requirements vary by product and range from 0.25% – 10%, as follows:
Major FX and Major Indices – 0.25%
All other FX and Indices – 0.25 – 1%.
Bullion and Treasuries – 0.5%
Crude Oil and Brent Crude – 1%
All other Commodities and other Energy markets – 3%.
Equities from 5 to 10%.
HOW DO I CALCULATE MY MARGIN REQUIREMENT?
Margin requirement is calculated as a percentage of the position. Please make sure you are aware of the applicable margin requirement before you execute a trade.
Margin requirement is calculated as follows:
FX and Bullion: $250 to $500 per lot, with 1 lot being
100,000 in FX
100 Ounces of Gold
5000 Ounces of Silver
CFDs: (eg US Crude)
Calculation: Price / minimum tick fluctuation * number of CFDs = Contract value * Margin Percentage = Margin Requirement in USD Example: 101.21 / 0.01 * 10 = $101,210 x 1% = $1,021.10
HOW DO I CALCULATE MY EQUITY MARGIN RATIO (E/M) FOR A MARGIN CALL?
E/M is your ratio of equity over margin requirement. For example, if you had equity (funds available) of $50 and your margin requirement was $100 then your E/M Ratio would be 50% (50/100 * 100).
Indices: 0.5% – 1% of contract size
If you are long 10 FTSE @ 5670 Contract Value = (Quantity * Market Price) * Margin Requirement = 10 * 5670 * 0.005 = $283.50
Foreign Exchange: 0.25%
You are long 100 000 AUDUSD Contract value = (Quantity * Exchange rate) * Margin Requirement = (100 000 * 0.25%) = $250.00
You are long 100 ounces @ $1734.4 Spot Gold & Spot Silver is $500 per lot. Gold Future and Silver Future You are long 10 CFD @ 1734.4 Contract value = (Quantity * Market Price) * Margin Requirement = (10*1734.4) *0.05 = $867.20
Commodities: 1% – 3%
You are long 10 US Crude CFD’s @ 99.37 Contract value = (Quantity * Market Price)/ Minimum Fluctuation) * Margin = (10 *99.37 ) / 0.01) * 0.01 = $993.70.