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Max Deal
and Margin Balance reviewed ..
Have you
looked at the “Max Deal” link under the Margin Balance? It
represents your current buying power (in lots) based on your
existing margin balance and taking into consideration your open
positions. This calculation is done for you here.
To
calculate margin for any open trade first determine your
leverage. If your leverage is 100:1 it means you need to
keep 1/100th of the value of your position in your margin
balance to keep the trade open. So if you have 40,000 EUR/USD
you are holding 40,000 Euros and the value of that in Dollars is
determined by multiplying 40,000 by the current rate of EUR/USD.
Lets say that value is 1.35. So 40,000 X 1.35 = $54,000. Now
you just multiply $54,000 by 1/100 or .01 = $540. $540 is the
Margin requirement for a position of 40,000 EUR/USD or any EUR/XXX
position.
The maximum available margin is .1% (100x leverage) for mini
accounts and 1% (100x leverage) for standard accounts. Traders
always have the option of employing a lower degree of leverage.
The minimum margin requirement is approximately $100 per lot in a
mini account and approximately $1000 per lot in a standard
account. The requirements for leverage may vary with account
size or market conditions, and may be changed from time to time
at the sole discretion of the firm.
If maximum leverage is employed, traders must maintain the
minimum margin requirement on their open positions at all times.
It is the customer's responsibility to monitor his/her margin
account balance. The firm has the right to liquidate any or all
open positions whenever a trader's minimum margin requirement is
not maintained. This is an important risk management feature
designed to strictly limit trading losses in your account.
The trading platform automatically calculates margin
requirements and checks available funds before allowing you to
successfully enter a new position. If you do not have adequate
funds available to enter a new position, you will receive an
"insufficient margin funds" message when attempting to deal.
If the unrealized P&L of your net total open position falls
below your account balance, your account is under margined and
all your open positions may be liquidated. To avoid
liquidation of your positions, do not use your entire account
balance as margin for open positions. Instead, leave enough
funds in your account to withstand a market movement against
your open positions. We suggest you always use stop loss orders
to limit your downside risk.
Please contact us if you wish at any time to use a lower degree
of leverage or otherwise adjust the margin settings in your
account.
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