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Admiral Markets Offers New Margining Model, with Leverage on Major CFDs Increased

December 30, 2016 14:35

Dear Traders,

We are happy to announce that the power of leveraged trading is now yours. Whether you're going long or short, you will feel more in control than ever before.

Starting from 9 January 2017, we will be providing new margining terms on Admiral.Markets and Admiral.Prime accounts, under which the provided leverage will no longer depend on account's balance and will be determined only by position's notional value in account's currency.

Additionally, positions opened within an hour before the trading session close on Fridays will be provided with the leverage of 1:50.

What are the benefits of new terms?

  • More confidence in trading as the margin value for your current positions will no longer increase all of a sudden once your balance reaches another tier. Under new terms, you will be in full control of your leverage rate as you control the size of your position.
  • More effective utilisation of your funds for trading without decreases of potential exposure once you're bound to a lower leverage rate due to an increase of your balance. Under new terms, your potential exposure will always be growing along with your funds and vice versa.
  • More freedom in trading due to fully independent margining of different instrument types, which provides greater flexibility in terms of combining different trading strategies on the same account.
  • Enhanced protection against negative balances due to a leverage rate of 1:50 which will be applied to positions opened during the pre-close hours on Fridays, with the intention to minimise the potential impact of weekend price gaps.
  • Increased accessibility of most popular CFDs for clients with smaller deposits due to a leverage rate of 1:500 that will be available for [DAX30], [FTSE100], [DJI30], [NQ100], [SP500], [ASX200], GOLD, SILVER, WTI and BRENT.
  • More trading opportunities for one of the major currency pairs - USDCHF - and other currency pairs with the Swiss franc, which will no longer be an exception from general FX terms and will get the leverage up to 1:500.
  • Traditional, straightforward margin calculation (please see examples below).

Example 1: Buying a rolling spot FX product

Assuming your account type is Admiral.Markets and its deposit currency is USD, the following margin terms will be available for major FX instruments starting from 9 January 2017:

Notional Position Value, USD

Leverage Rate

Up to 7,500,000

1:500

7,500,000 — 10,000,000

1:200

10,000,000 — 12,500,000

1:50

Over 12,500,000

1:10


Let's open a position Buy 10 lots EURUSD at 1.04440.

Notional position value in account's currency (USD) is 10 lots x 100,000 x 1.0444 = 1,044,400 USD, which is less than the 1st tier of 7,500,000 USD.

Therefore, the leverage of 1:500 will be applied to this position, and the margin requirements will be calculated as 1,044,400 / 500 = 2,088.8 USD.

Example 2: Buying a cash index CFD product

Assuming that the following terms will be available for cash index CFDs:

Notional Position Value, USD

Leverage Rate

Up to 500,000

1:500

500,000 — 3,500,000

1:200

3,500,000 — 4,700,000

1:50

Over 4,700,000

1:10


Let's open a position Buy 100 lots on [DAX30] at 11,467.88.

[DAX30] is quoted in EUR, so the notional position value in account's currency (USD) is 100 lots x 11,467.88 x 1.04440 = 1,197,705.39 USD.

The above value is more than the 1st tier of 500,000 USD, but less than the 2nd tier of 3,500,000 USD.

Therefore, the leverage of 1:500 will be applied to the first 500,000 USD of this position, and the leverage of 1:200 will be applied to the remainder, so the margin requirements will be calculated as 500,000 / 500 + 697,705.39 / 200 = 4,488.53 USD.

Summary margin requirements for EURUSD and [DAX30] positions from the above examples will be 2,088.8 + 4,488.53 = 6,577.33 USD.

Can I test these amendments prior to launch?

Yes, everything will be available on Admiral.Markets demo accounts starting from Monday, 2 January 2017, so you are welcome to open a demo account via Trader's Room and practice trading under the new terms after the New Year's holiday. Please note that the same margin terms will be applied to Admiral.Prime accounts once we go live on 9 January, 2017.

Will these amendments affect my open positions?

No, they will not. The new terms will be only applied to new positions starting from session opening on Monday, 9 January 2017.

Are you going to apply these amendments to my MT5 account?

No. For the time being, Admiral.MT5 accounts will keep the flat leverage rate of 1:100. Improvements will come soon.

Are you going to apply these amendments to my Admiral.Markets account on AM-Live1 or AM-Live3 servers?

The margining changes will be applied to clients with Admiral.Markets accounts on AM-Live1 and AM-Live2 trading servers.

If you have an Admiral.Markets (ex Admiral-Pro) account on AM-Live3 server, please be advised to open a new account and transfer funds internally via Trader's Room in order to get access to all recent and forthcoming improvements.

Can I learn more about the Friday pre-close hours margining?

Yes, it will work exactly as follows:

If a position is opened within an hour before the Friday trading session close of any given instrument, the leverage applied to such position will be 1:50 except for positions opening at lower leverage rates (e.g. 1:10). The margin value for positions opened at the leverage rate of 1:50 during the pre-close hour will be automatically recalculated on weekends, so by the session opening on Monday the margin value of such positions will reflect their notional value as per general margining terms.

Please also note that pre-close margin terms may be applied to other days of the workweek than Friday, e.g. before holidays affecting the trading hours of particular instruments.

Can I get an idea of what the new margining terms will be on my favourite instrument?

Yes, you can. Please see new margining terms for major deposit currencies in the tables below.

1. FX Majors (EURUSD, GBPUSD, USDJPY)

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 7,500,000

Up to 6,000,000

1:500

7,500,000 — 10,000,000

6,000,000 — 8,000,000

1:200

10,000,000 — 12,500,000

8,000,000 — 10,000,000

1:50

Over 12,500,000

Over 10,000,000

1:10


2. FX Minors

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 6,000,000

Up to 5,000,000

1:500

6,000,000 — 8,000,000

5,000,000 — 6,500,000

1:200

8,000,000 — 10,000,000

6,500,000 — 8,000,000

1:50

Over 10,000,000

Over 8,000,000

1:10


3. FX Exotics & Pairs with CHF

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 2,500,000

Up to 2,000,000

1:500

2,500,000 — 3,500,000

2,000,000 — 2,900,000

1:200

3,500,000 — 4,000,000

2,900,000 — 3,300,000

1:50

Over 4,000,000

Over 3,300,000

1:10


4. [ASX200], [DAX30], [DJI30], [FTSE100], [NQ100], [SP500]

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 500,000

Up to 400,000

1:500

500,000 — 3,500,000

400,000 — 2,900,000

1:200

3,500,000 — 4,700,000

2,900,000 — 3,800,000

1:50

Over 4,700,000

Over 3,800,000

1:10


5. [AEX25], [CAC40], [HSI50], [IBEX35], [JP225], [MDAX50], [OBX25], [SMI20], [STOXX50], [TECDAX30], #Bund, #USTNote, #USDX

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 1,000,000

Up to 800,000

1:200

1,000,000 — 1,500,000

800,000 — 1,200,000

1:50

Over 1,500,000

Over 1,200,000

1:10


6. GOLD, SILVER, XAUAUD, WTI, BRENT

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 500,000

Up to 400,000

1:500

500,000 — 3,000,000

400,000 — 2,500,000

1:200

3,000,000 — 4,000,000

2,500,000 — 3,300,000

1:50

Over 4,000,000

Over 3,300,000

1:10


7. PLATINUM, PALLADIUM, #China50

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 1,000,000

Up to 800,000

1:200

1,000,000 — 1,500,000

800,000 — 1,200,000

1:50

Over 1,500,000

Over 1,200,000

1:10


8. EURRUB, USDRUB

Notional Position Value, CHF, EUR, USD

Notional Position Value, GBP

Leverage Rate

Up to 1,500,000

Up to 1,200,000

1:25

1,500,000 — 2,300,000

1,200,000 — 1,900,000

1:10

Over 2,300,000

Over 1,900,000

1:3


Please note that margin requirements for instruments other than listed above (e.g. single share CFDs, NGAS) will remain unchanged.

Also, please note that the above data is indicative only as the notional value tiers may be updated following the changes of currency rates. Please be advised to check final values of the notional value tiers in the Margin Requirements section of our website on 9 January 2017.

If you have any questions, please do not hesitate to contact our customer support or your account manager.

Kind regards,

Admiral Markets