With larger transaction sizes, even a small market movement can significantly affect your Trading Account. To safeguard your investment capital from excessive leverage, we have introduced a comprehensive Margin Requirement Policy in addition to the categorization mentioned above. You can find details of this policy below:
TIERS | NOTIONAL VALUE (USD) | LEVERAGE | MARGIN |
|---|---|---|---|
| TIER 5 | > 10 000 000 | 01:20 | 5 % |
| TIER 4 | > 5,000,000 - 10,000,000 | 01:50 | 2 % |
| TIER 3 | > 2,000,000 - 5,000,000 | 02:40 | 1 % |
| TIER 2 | > 1,000,000 - 2,000,000 | 04:20 | 0.5 % |
| TIER 1 | 0 – 1,000,000 | 09:20 | 0.2 % |
| MAXIMUM SIZE PER SYMBOL $20,000,000 |
The maximum aggregated notional value per account permitted is 30,000,000 USD.
To calculate the margin requirements, it is important first to calculate the USD Notional Value.
Notional Value (USD) Formulas:
FX Symbols: Lot Size * Contract Size * Base Currency/USD market price
NON-FX Symbols: Lot Size * Contract Size * Price * Symbol Currency/USD market price
Let's consider a scenario where you initiate a Trade #1 by purchasing 7 lots of EURUSD at 1.2312 in a USD-denominated Account, with a Leverage of 1:500.
The notional value of this trade can be calculated as follows: 7 lots * 100,000 (standard lot size) * 1.2312 (exchange rate) = 861,840 USD. As this notional value of 861,840 USD is less than 1,000,000 USD, the provided Leverage remains at 1:500.
To determine the Margin Requirements, you can divide the notional value by the Leverage, which gives us: 861,840 / 500 = 1,723.68 USD.
1.If the leverage assigned to your account is smaller than the margin requirements leverage, your assigned leverage will apply.
2.The Company reserves the right to alter the margin requirements, as well as the maximum order size at any given time without any prior notice, as it deems appropriate, due to abnormal market conditions or any other upcoming economic events/news that it believes will have an impact in the stability of financial markets.
3.Shares - Prior to earnings announcement that may cause volatility in the market and/or on a particular share, the Company reserves the right to significantly increase margin requirements (up to 50%), to protect itself and its Clients from running into negative balance.
4.Cryptocurrencies - Every Friday at 21:00 (GMT+2) prior to the weekend mode, the margin requirements on Cryptocurrencies will be increased to 50%.