Forex Margins
The pair USD/CNH is not traded 24 hours. Trading hours are from 02:30 until 23:00 CET
The pair USD/RUB is not traded 24 hours. Trading hours are from 09:00 until 17:00 CET
The pair USD/BRL is not traded 24 hours. Trading hours are from 13:05 until 21:55 CET
With leverage, you can capture higher returns for smaller market movements. It increases your buying power because you need less capital to trade. Thus, increasing leverage increases risk. The high degree of leverage available may as well work against you. Before deciding to invest in Forex you should carefully consider your investment objectives, level of experience and your capability to take risk.
If during an open trade, the net worth of the account reaches the “margin close out level” of the required margins, positions in excess would be automatically closed. Please note that in the case of a margin close out the most unprofitable position will be closed first.
The maximum leverage applied to each of the client´s accounts is based on the client´s total equity on all the accounts.
Close-out level for client accounts is set at 50%
Please find below the Used Margin thresholds for customers with SwissCayTrader platform. If the used margin in
client’s accounts exceeds the thresholds set below, the respective coefficient will be applied to the
leverage for each of the trading instruments, for the part of the position exceeding the threshold itself.
| Used Margin EUR | Coefficient |
|---|---|
| 300k-600k | 0.5 |
| >600k | 0.25 |
| Used Margin USD and CHF | Coefficient |
|---|---|
| 360k – 720k | 0.5 |
| >720k | 0.25 |
| Used Margin GBP | Coefficient |
|---|---|
| 260k – 520k | 0.5 |
| >520k | 0.25 |
A client with EUR account and leverage 1:200 has Long position for 420 lots EURUSD.
Margin requirement for this position is 290 000 EUR
- 150 000 EUR for the first 300 lots with 1:200 leverage
- 100 000 EUR for the next 100 lots with 1:100 leverage
- 40 000 EUR for the final 20 lots with 1:50 leverage
The next trade Buy 20 lots EURUSD will consume 70 000 EUR margin
- 10 000 EUR for the first 5 lots – bringing the Used margin to 300 000 EUR
- 60 000 EUR for the next 15 lots – leverage 1:25 (coefficient 0.5 applied to 1:50 leverage)
A client can have positions in different instruments that again bring the used margin above the thresholds
specified.
A client with EUR account and leverage 1:200 has Long position for 120 lots Ger30 (at price 13000)
and Short position in GOLD for 40 lots (at price 1770).
Total used margin requirement is 290 000 EUR
- 130 000 EUR for Long position for the first 80 lots in Ger30 at 1:200 leverage
- 130 000 EUR for Long position for the final 40 lots in Ger30 at 1:100 leverage
- 35 400 USD Short position in GOLD for 40 lots at 1:200 leverage (30 000 EUR at EURUSD = 1.1800)
The next trade Buy 40 lots EURUSD will consume 30 000 EUR margin
- 10 000 EUR for the first 20 lots at leverage 1:200 – bringing the Used margin to 300 000 EUR
- 20 000 EUR for the next 20 lots – leverage 1:100 (coefficient 0.5 applied to 1:200 leverage)
If a client has more than 1 account, the Used margin thresholds are reduced proportionately to the number of
accounts. Thus a client with 2 accounts in EUR will have Used margin EUR threshold for each of the accounts reduced
by half.
The pair USD/CNH is not traded 24 hours. Trading hours are from 02:30 until 23:00 CET
The pair USD/RUB is not traded 24 hours. Trading hours are from 09:00 until 17:00 CET
The pair USD/BRL is not traded 24 hours. Trading hours are from 13:05 until 21:55 CET
With leverage, you can capture higher returns for smaller market movements. It increases your buying power because you need less capital to trade. Thus, increasing leverage increases risk. The high degree of leverage available may as well work against you. Before deciding to invest in Forex you should carefully consider your investment objectives, level of experience and your capability to take risk.
If during an open trade, the net worth of the account reaches the “margin close out level” of the required margins, positions in excess would be automatically closed. Please note that in the case of a margin close out the most unprofitable position will be closed first.
Please note that for MT4 accounts the required margin for hedged positions is 10%.
The following currency pairs are subject to a greater margin requirement:
USDZAR, EURHUF, USDHUF, EURPLN, USDPLN, USDRUB, USDBRL: the permitted leverage is 1/2.5 of the standard margin on your account.
EURTRY, TRYJPY, USDTRY: the permitted leverage is 1/5 of the standard margin on your account.
EURNOK, USDNOK, EURSEK, USDSEK, USDCNH, SGDJPY, USDSGD, EURSGD: the permitted leverage is 1/8 of the standard margin on your account.
EURCHF, AUDCHF, CHFJPY, CADCHF, GBPCHF, USDMXN, USDCHF and NZDCHF: the permitted leverage is 1/2 of the standard margin on your account.
The maximum leverage applied to each of the client´s accounts is based on the client´s total equity on all the accounts.
Close-out level for client accounts is set at 50%
The pair USD/CNH is not traded 24 hours. Trading hours are from 02:30 until 23:00 CET
The pair USD/RUB is not traded 24 hours. Trading hours are from 09:00 until 17:00 CET
The pair USD/BRL is not traded 24 hours. Trading hours are from 13:05 until 21:55 CET
With leverage, you can capture higher returns for smaller market movements. It increases your buying power because you need less capital to trade. Thus, increasing leverage increases risk. The high degree of leverage available may as well work against you. Before deciding to invest in Forex you should carefully consider your investment objectives, level of experience and your capability to take risk.
If during an open trade, the net worth of the account reaches the “margin close out level” of the required margins, positions in excess would be automatically closed. Please note that in the case of a margin close out the most unprofitable position will be closed first.
The maximum leverage applied to each of the client´s accounts is based on the client´s total equity on all the accounts.
Close-out level for client accounts is set at 50%
Please find below the Used Margin thresholds for customers with SwissCayTrader platform. If the used margin in
client’s accounts exceeds the thresholds set below, the respective coefficient will be applied to the
leverage for each of the trading instruments, for the part of the position exceeding the threshold itself.
| Used Margin EUR | Coefficient |
|---|---|
| 300k-600k | 0.5 |
| >600k | 0.25 |
| Used Margin USD and CHF | Coefficient |
|---|---|
| 360k – 720k | 0.5 |
| >720k | 0.25 |
| Used Margin GBP | Coefficient |
|---|---|
| 260k – 520k | 0.5 |
| >520k | 0.25 |
A client with EUR account and leverage 1:200 has Long position for 420 lots EURUSD.
Margin requirement for this position is 290 000 EUR
- 150 000 EUR for the first 300 lots with 1:200 leverage
- 100 000 EUR for the next 100 lots with 1:100 leverage
- 40 000 EUR for the final 20 lots with 1:50 leverage
The next trade Buy 20 lots EURUSD will consume 70 000 EUR margin
- 10 000 EUR for the first 5 lots – bringing the Used margin to 300 000 EUR
- 60 000 EUR for the next 15 lots – leverage 1:25 (coefficient 0.5 applied to 1:50 leverage)
A client can have positions in different instruments that again bring the used margin above the thresholds
specified.
A client with EUR account and leverage 1:200 has Long position for 120 lots Ger30 (at price 13000)
and Short position in GOLD for 40 lots (at price 1770).
Total used margin requirement is 290 000 EUR
- 130 000 EUR for Long position for the first 80 lots in Ger30 at 1:200 leverage
- 130 000 EUR for Long position for the final 40 lots in Ger30 at 1:100 leverage
- 35 400 USD Short position in GOLD for 40 lots at 1:200 leverage (30 000 EUR at EURUSD = 1.1800)
The next trade Buy 40 lots EURUSD will consume 30 000 EUR margin
- 10 000 EUR for the first 20 lots at leverage 1:200 – bringing the Used margin to 300 000 EUR
- 20 000 EUR for the next 20 lots – leverage 1:100 (coefficient 0.5 applied to 1:200 leverage)
If a client has more than 1 account, the Used margin thresholds are reduced proportionately to the number of
accounts. Thus a client with 2 accounts in EUR will have Used margin EUR threshold for each of the accounts reduced
by half.
The pair USD/CNH is not traded 24 hours. Trading hours are from 02:30 until 23:00 CET
The pair USD/RUB is not traded 24 hours. Trading hours are from 09:00 until 17:00 CET
The pair USD/BRL is not traded 24 hours. Trading hours are from 13:05 until 21:55 CET
With leverage, you can capture higher returns for smaller market movements. It increases your buying power because you need less capital to trade. Thus, increasing leverage increases risk. The high degree of leverage available may as well work against you. Before deciding to invest in Forex you should carefully consider your investment objectives, level of experience and your capability to take risk.
If during an open trade, the net worth of the account reaches the “margin close out level” of the required margins, positions in excess would be automatically closed. Please note that in the case of a margin close out the most unprofitable position will be closed first.
Please note that for MT4 accounts the required margin for hedged positions is 10%.
The following currency pairs are subject to a greater margin requirement:
USDZAR, EURHUF, USDHUF, EURPLN, USDPLN, USDRUB, USDBRL: the permitted leverage is 1/2.5 of the standard margin on your account.
EURTRY, TRYJPY, USDTRY: the permitted leverage is 1/5 of the standard margin on your account.
EURNOK, USDNOK, EURSEK, USDSEK, USDCNH, SGDJPY, USDSGD, EURSGD: the permitted leverage is 1/8 of the standard margin on your account.
EURCHF, AUDCHF, CHFJPY, CADCHF, GBPCHF, USDMXN, USDCHF and NZDCHF: the permitted leverage is 1/2 of the standard margin on your account.
The maximum leverage applied to each of the client´s accounts is based on the client´s total equity on all the accounts.
Close-out level for client accounts is set at 50%
Example of an Automatic Tradeout
You have €10,000 equity in your trading account and an open short EUR position against the USD of 20 lots (€2,000,000) at 1.1850. The Tradeout level of your account is set by SwissCayTrades as 50% and your maximum permissible leverage at 1:200. Therefore your margin requirement for this trade is the full €10,000 of your equity.
The market, unfortunately, rises to 1.1878/1.1879, at this level your position is losing $5,800 (29 pips X $200 pip value) or €4,882.57. Your total equity now stands at €5,117.43. If the market rises one more pip to 1.1879/1.1880 then your losses would increase to €5,050.50 and your balance decrease to €4,949.50. At this point, you no longer hold the minimum of 50% equity of your margin requirement and your position is closed out at 1.1880. Your remaining equity balance will be €4,949.50.
