News

February 2018 19

Introduction of Floating Margin Requirements

Dear Clients,

As of Feb 26, 2018, the Company will introduce floating margin requirements for positions in Forex, Metals, Energies and Indices.

Floating margin requirements will apply since Feb 26, to all accounts with the Company, all types of clients, and all positions (new and existing) .

The effect of the floating margin is that the Company will be applying different margin levels for different levels of exposure in Client accounts.

Floating margin grid is will be as follows:

Forex Pairs

USD Exposure

Max Leverage Applied

Margin Level

0 - 1,000,000

1:500

0.20%

1,000,000 - 2,000,000

1:200

0.50%

2,000,000 - 4,000,000

1:100

1.00%

4,000,000 - 10,000,000

1:50

2.00%

Over 10 mil.

1:25

4.00%

Metals

USD Exposure

Max Leverage Applied

Margin Level

0 - 5,000,000

1:100

1.00%

5,000,000 - 10,000,000

1:50

2.00%

Over 10 mil.

1:25

4.00%

Energies (UKBrent, USCrude)

USD Exposure

Max Leverage Applied

Margin Level

0 - 1,000,000

1:100

1.00%

1,000,000 - 5,000,000

1:50

2.00%

5,000,000 - 10,000,000

1:25

4.00%

Over 10 mil.

1:10

10.00%

Indices

USD Exposure

Max Leverage Applied

Margin Level

0 - 1,000,000

1:100

1.00%

1,000,000 - 2,000,000

1:50

2.00%

2,000,000 - 5,000,000

1:25

4.00%

Over 5 mil.

1:10

10.00%

E.g., for an account with 1:500 leverage, the Client will be able to have an exposure to Forex instruments of up to US$ 1 mln with the margin of 0.2%, after which the next US$ 1 million of exposure will require margin of 0.5%, further US$ 2 mln increase of positions will require margin of 1%, and so on. Please note that the recalculations of margin takes place separately for each group of instruments. I.e. increased margin requirements for Forex instruments, in case of large exposures in such, will not impact margin requirements for positions in Indices, Oil and Metals.

Sincerely,

TeleTrade