Help: Margin

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Margin and Leverage

QWhat is Required Margin?
AThis is the cash collateral required to place new orders or maintain open positions.
QWhat is the Margin Ratio?
AThis refers to the ratio of your account's Net Equity to Required Margin, and is calculated using the following formula: Net Equity ÷ Required Margin x 100. Please visit the following page for full details:Markets
QWhat is Leverage?
ALeverage refers to the ability to hold a position of greater value than the actual required capital. Please visit the following page for full details:Markets
QIs leverage changeable?
ALeverage cannot be changed - the maximum leverage depends on the instrument you are trading, and is pre-defined by Trade.
QWhen will realised Rollover be reflected in my account balance?
ARollover earned overnight for open positions will be credited or debited from your account after the end of that trading day.
QWhat is Unrealised Profit/Loss?
AThis refers to the profit/loss of open positions and are marked-to-market. This is calculated and updated in real-time.
QWhen will realised profit (unsettled trading profit) be reflected in my account balance?
ARealised trading profit/loss will be settled (i.e. credited to or debited from your cash balance) at Trading Close.
QWhy is there a difference between my Usable Margin and Available Funds?
A Usable Margin is the amount of funds available in your account to make a new trade. This amount takes into account the realised profit/loss from closed trades and rollover that has yet to be settled.
The realised profit/loss from closed trades and rollover will be reflected your Available Funds on the respective value (settlement) dates. Hence, there may be a difference between your Usable Margin and Available Funds.
QWhat is Net Equity?
AThis is the sum of unrealized profit/loss and your account balance.
QWhat is Account Balance?
AThis is the sum of your cash balance, which includes unsettled and settled profit/loss and rollover.
QIs the marked-to-market (current) price under Positions updated in real time?
AYes. Short positions will be marked-to-market using the current BUY price while long positions will be marked-to-market with the current SELL price. Both SELL and BUY prices are updated in real-time.

Auto-Closeout and Margin Calls

QWhat is Auto-Closeout?
AAll of your open positions and pending orders will be closed out automatically if your net equity falls below 60% of the required margin.
QWill Auto-Closeout be triggered if I have hedged trades?
ADue to movements in the market resulting in widened spreads, negative rollover charges, or an increase in required margin, your hedged trades may still be subject to Auto-Closeout.
QDo you issue Margin Calls?
AWe do not - please ensure that you monitor all of your open positions.
QWhy wasn't Auto-Closeout triggered when my margin ratio fell below 60% for an instant?
AAs your account status is monitored at regular intervals, there may be a few minutes of time taken for our system to determine whether your account has become subject to auto-closeout after your margin ratio falls below 60%. Within this time difference, if your margin ratio rises back above 60%, Auto-Closeout will not be triggered.
QDo you charge a fee for Auto-Closeout?
AWe do not charge a fee for this function.

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Risk Warning
Trading in leveraged products carries a high level of risk. Your losses may exceed your initial investment requiring you to make further payments. These products are not suitable for everyone and you should seek independent advice if you are in any doubt. Please ensure that you fully understand the risks.

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