How do I calculate my margin requirement for a CFD commodity position?
Please note that each CFD position is subject to minimum size and margin requirements to open a trade.
Initial Margin Required for CFDs = (Number of lots) x (Initial Margin Rate) x (Contract Size) x (Current Market Price). The following example is based on trading one standard lot on WTI Crude Oil:
Position Size: 1 standard lot
Contract Size: 1000 barrels
Contract Value: $10 per point
Margin Requirement: 1%
Margin Required: 1 lot * 1% * 1000 * 41.58 USD = Total Exposure: 41.58 * 1000 = 41,580 USD
Margin: 415.80 USD
*You will need to convert the margin amount into your base currency if it is different from the currency of the index your position is opened.