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Amendments to Margin Requirements

January 18, 2017 12:46

Dear Traders,

Please take note of the following information regarding the forthcoming changes to our margin requirements. The changes that will take place in the coming days are as follows:

1. Recalculation of margin requirements to positions opened under old margining terms

The margin values of all positions opened on Trade.MT4 and Zero.MT4 accounts prior to 9 January 2017 (i.e. under the old margining terms) will be recalculated according to the current Margin Requirements. This process will be part of the weekend maintenance scheduled for 21-22 January 2017.

The reason for this recalculation is the fact that new margining provides a higher leverage for smaller positions on a number of popular instruments, such as DAX30, GOLD, USDCHF and others, while there is no option for clients to decrease the margin values for old positions.

If you have large positions opened before 9 January 2017, we advise you to make sure you have sufficient funds present in order to meet the current Margin Requirements for all your positions. This is because leverage rates of 1:50 and/or 1:10 can be applied to some parts of large positions.

Please note that this will not have any effect on clients with an Trade.MT4 (ex-Pro) account on the AM-Live3 trading server—as long as the new margining terms are not applicable to these accounts.

2. Amendments of the pre-close margining terms

Starting from Friday, 21 January 2017, the pre-close margining terms will be as follows:

If a position is opened or closed (fully or partially) on an Trade.MT4 or Zero.MT4 account within an hour of the close of the Friday trading session on any given instrument, the leverage applied to all positions will be 1:50. This will include positions opened prior to the pre-close hour but will not include those with lower leverage rates (e.g. 1:10).

The above term will have an extended duration for a number of CFDs on cash indices and bonds, the respective data is already specified on the instrument pages in Contract Specifications.

The margin value of positions with the leverage rate of 1:50 applied during the pre-close hour will be automatically recalculated on weekends. By the session opening on Mondays the leverage applied to such positions will reflect their notional value as per general margining terms.

Weekend recalculations will also take into consideration the leverage rate settings you may have selected in your Trader's Room.

Please also note that the above terms can be applied to other days of the working week, in cases where holidays may affect the trading schedule, for example. We will notify you about such changes as and when they occur.

3. Selecting the maximum leverage via your Trader's Room

Clients with an Trade.MT4 or Zero.MT4 account are now able to manually increase or decrease their account leverage simply by selecting one of the leverage rates in the account settings section of their Trader's Room. All leverage options are available regardless of the account's balance.

Please note that the change of an account's leverage has an immediate effect on the margin value of all open positions, so it's highly recommended to double-check your open positions if you choose to decrease the maximum leverage.

Please also note that if you choose to select a decreased leverage rate, the notional value ranges applicable to your positions begin from those specified for the selected leverage in the Margin Requirements section.

If you have any questions about these changes, please don't hesitate to contact our customer support team or your account manager.

Kind regards,

Admiral Markets