The following content is effective from March 29, 2021 and is only applicable to retail customers.
For wholesale customers, please consult customer service.

Margin & Auto Settle

When setting up a new positions

FX (Major Currency Pair)

Necessary Margin =
Open Price × Contract Size × 3.33%

FX (Minor Currency Pair)

Necessary Margin =
Open Price × Contract Size×5%

Gold CFD

Necessary Margin =
Open Price × Contract Size×5%

Commodity CFD (other than gold)

Necessary Margin =
Open Price × Contract Size×10%

Securities CFD (Major Stock Market)

Necessary Margin =
Open Price × Point Value ×5%

Securities CFD (Minor Stock Market)

Necessary Margin =
Open Price × Point Value × 10%

When holding a position at the time of rollover

FX (Major Currency Pair)

Projected Margin =
Close Price × Contract Size × 3.33%

FX (Minor Currency Pair)

Projected Margin =
Close Price × Contract Size×5%

Gold CFD

Projected Margin =
Close Price × Contract Size×5%

Commodity CFD (other than gold)

Projected Margin =
Close Price × Contract Size×10%

Securities CFD (Major Stock Market)

Projected Margin =
Close Price × Point Value ×5%

Securities CFD (Minor Stock Market)

Projected Margin =
Close Price × Point Value × 10%

Major Currency Pair : An exchange rate for a pair of currencies that consists of any two of the following: AUD; GBP; CAD; EUR; JPY; CHF; USD. Minor currency pairs are all currency pairs that are not a major currency pair.
Major Stock Index : Any of the following stock market indices: CAC 40; DAX; DOW; EuroStoxx 50 Index; FTSE 100; NASDAQ-100; NASDAQ Composite Index; Nikkei; S&P 500; S&P/ASX 100. Minor indices are all stock indices that are not a major index.

Projected Margin at the time of rollover will be the necessary margin for the outstanding position in the next trading day. If it’s a long position, Close Price should use ask price.

Necessary Margin of Hedge Position： If the long position and the short position of the same product are held at the same time, necessary margin will be calculated by the higher open price between the long and the short position.

Please refer to the following links for the contract size and the point value.

FX

Commodity CFD

Securities CFD

Calculation Formula of Margin

  • Current Margin Percentage = Effective Margin/ Necessary Margin
  • Projected Margin Percentage = Effective Margin / Projected Margin
  • Effective Margin= Balance±Floating P/L
  • Variation Margin= Effective Margin- Necessary Margin

Example of Margin

In General

e.g. Buying a lot of EUR/USD at 1.12000, and closing price at rollover time is 1.12500.

  1. When setting up the position
    Necessary Margin = 1.12000(Open Price)×10000×3.33%＝372.96 dollars
  2. When holding the position at the time of rollover
    Projected Margin= 1.12500(Close Price)×10000×3.33%＝374.63 dollars
  3. Necessary Margin of this outstanding position in the next trading day will be 374.63 dollars.

For Hedge Position

e.g. Buying a lot of EUR/USD at 1.12000, and meantime selling a lot of EUR/USD at 1.12020.

  1. Necessary Margin of Long Position
    Necessary Margin = 1.12000×10000×1.67%＝187.04 dollars
  2. Necessary Margin of Short Position
    Necessary Margin= 1.12020×10000×1.67%＝187.07 dollars

So, the necessary margin of the hedge position is 187.07*2=374.14 dollars.

Auto Settle

All the currency pairs of the FX trading, spot gold and spot silver of Commodity CFD belong to spot products. Crude oil, copper, soybean, wheat, corn and all the products of Securities Futures CFD belong to futures products.

Auto Settle Rules of Spot Products

During the trading hours from Monday to Friday, if the current margin percentage drops below 50%, auto settle starts. And, at the moment of market close on Friday or on a certain trading day before a holiday, if the projected margin percentage drops below 100%, auto settle also starts.

Auto Settle Rules of Futures Products

During the trading hours from Monday to Friday, if the current margin percentage drops below 50%, auto settle starts. And, between the market close and the next trading day’s market open from Monday to Thursday, if the projected margin percentage drops below 50%, auto settle also starts. And, at the moment of market close on Friday or on a certain trading day before a holiday, if the projected margin percentage drops below 100%, auto settle also starts.

If the outstanding positions include both spot and futures products, the auto settle rule should refer to both of the above simultaneously.

  • Auto settle starts automatically at the real-time price until the effective margin meets the requirement.
  • For 2 or more outstanding positions, auto settle adheres to the principle of last in, first out.
  • Auto settle is no guarantee that the client’s loss can be exactly controlled at a price equivalent to the set amount of auto settle. When market price fluctuates violently and against the client, it’s likely that the execute price is more unfavorable for the client than the price of auto settle in theory, which may cause the deficit in the book account and require margin call.
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