Margin Requirements and Trading Limits

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Margin Requirements and Trading Limits Margin Requirements and Trading Limits As the transaction size increases, even a minor market movement might have a great impact on your Trading Account, therefore, as an effort to protect your investment capital from excessive leverage, we have implemented a sophisticated Margin Requirement Policy, which you can see below: Forex Majors 1/8

Forex Minors Forex Exotics 2/8

Metals Commodities 3/8

Shares Indices 4/8

Cryptocurrencies MAXIMUM ACCOUNT SIZE The maximum aggregated notional value per account permitted is 30,000,000 USD. MARGIN HEDGED 50% Margin Hedged applies for all symbols. Margin Hedged Example Assume you open a Buy and a Sell position of 1 lot each on EURUSD, with a leverage of 1:100 for a EUR Denominated Account. Margin Hedged Requirements = [(2 * 100,000 * 50%)] /100 = 1,000 EUR 5/8

How do I calculate Margin Requirements? To calculate the margin requirements, it is important first to calculate the USD Notional Value. Notional Value (USD) Formulas FX Symbols: Lot Size * Contract Size * Base Currency/USD market price NON-FX Symbols: Lot Size * Contract Size * Price * Symbol Currency/USD market price Assume you open a Position #1 Buy 7 lots EURUSD 1.2312 for a USD Denominated Account, with a Leverage 1:500. TIER 1 The notional value is: 7 * 100 000 * 1.2312 = 861,840 USD. Since the notional value of 861,840 USD is not greater than 1,000,000 USD, the Leverage offered is 1:500. Margin Requirements = 861,840 / 500 = 1,723.68 USD You open a position # 2 Buy 5 lots EURUSD 1.2350 The notional value is: 5 * 100 000 * 1.2350 = 617,500 USD. The aggregate notional value of Position #1 and Position #2 is: TIER 2 861,840 (for position # 1) + 617,500 (for position # 2) = 1,479,340 USD. In this case, the aggregate notional value of open positions is greater than 1,000,000 USD, but less than 2,000,000 USD. Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, and a leverage of 1:200 for the remaining 479,340 USD. Margin Requirements = [(1,000,000 / 500) + (479,340 / 200)] = 4,396.70 USD 6/8

Assume you open a Position #3 Buy 20 lots EURUSD 1.2400 The notional value is: 20 * 100 000 * 1.2400 = 2,480,000 USD. The aggregate notional value of all three positions is: TIER 3 861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) = 3,959,340 USD. Now the aggregate notional value of open positions is greater than 2,000,000 USD but less than 5,000,000 USD. Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD and a leverage of 1:100 for the remaining amount of 1,959,340 USD. Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (1,959,340 / 100)] = 26,593.40 USD Assume you open a Position #4 Buy 30 lots EURUSD 1.2500. The notional value is: 30 * 100 000 * 1.2500 = 3,750,000 USD. The aggregate notional value of all four positions is: TIER 4 861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) + 3,750,000 (for position #4) = 7,709,340 USD. Now the aggregate notional value of open positions is greater than 5,000,000 USD but less than 10,000,000 USD. Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD, a leverage of 1:100 for the next 3,000,000 USD and a leverage of 1:50 for the remaining amount of 2,709,340 USD. Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (3,000,000 / 100) + (2,709,340 / 50)] = 91,186.80 USD 7/8

Assume you open a Position #5 Buy 30 lots EURUSD 1.2300. The notional value is: 30 * 100 000 * 1.2500 = 3,690,000 USD. The aggregate notional value of all five positions is: TIER 5 861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) + 3,750,000 (for position #4) + 3,690,000 (for position #5) = 11,399,340 USD. Now the aggregate notional value of open positions is greater than 10,000,000 USD. Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD, a leverage of 1:100 for the next 3,000,000 USD and a leverage of 1:50 for 5,000,000 USD and a leverage of 1.20 for the remaining amount of 1,399,340 USD. Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (3,000,000 / 100) + (5,000,000 / 50) + (1,399,340 / 20)] = 161,136.80 USD Important Notice: 1. If the leverage assigned to your account is smaller than the margin requirements leverage, your assigned leverage will apply. 2. The Company reserves the right to alter the margin requirements, as well as the maximum order size at any given time without any prior notice, as it deems appropriate, due to abnormal market conditions or any other upcoming economic events/news that it believes will have an impact in the stability of financial markets. 3. Shares Prior to earnings announcement that may cause volatility in the market and/or on a particular share, the Company reserves the right to significantly increase margin requirements (up to 50%), to protect itself and its Clients from running into negative balance. 4. Cryptocurrencies Every Friday at 21:00 (GMT+2) prior to the weekend mode, the margin requirements on Cryptocurrencies will be increased to 50%. 8/8