Margin requirements and calculations

Margin requirements

Please be aware that each position is subject to minimum size and margin requirements in order to open a trade.

Example 1: A product with 1% standard margin rate:

A client with 400:1 account leverage will receive a 0.25% initial margin requirement on a position, and the effective leverage is 400:1. If another client with 200:1 account leverage opened the same position, the initial margin requirement will be 0.5%, and the effective leverage is 200:1.

Example 2: A product with 2% Standard Margin Rate:

A client with 400:1 account leverage will receive a 0.5% initial margin requirement on a position, and the effective leverage is 200:1. If another client with 200:1 account leverage opened the same position, the initial margin requirement will be 1.0%, and the effective leverage is 100:1.

Example 3: for a product with 4% Standard Margin Rate:

A client with 400:1 account leverage will receive a 1.0% initial margin requirement on a position, and the effective leverage is 100:1. If another client with 200:1 account leverage opened the same position, the initial margin requirement will be 2.0%, and the effective leverage is 50:1.

Margin Calculation Formulas

Margin Calculation Formula (All Asset Classes)

(No. of lots * Contract size * Price (buy or sell))/Effective Leverage

For products that use account leverage (Forex and Metals): Account leverage / (Margin % * 100)

For products that have fixed leverage (All other CFDs): 1/Initial Margin Rate %

Initial Margin Rate can be found in the Product Schedule.

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