Futures And Metals Margin Requirements In FxPro
Metals Margin Requirements
As in forex trading, FxPro uses a dynamic leverage model for trading precious metals and futures, which automatically adapts to clients, trading positions. As the trading volume per Instrument of a client increases, the maximum leverage offered decreases accordingly; as per the table below.
| Open Lots | Margin Requirement | Maximum Leverage |
|---|---|---|
| 0-1 | 0.5% | 1:200 |
| >1-2 | 1% | 1:100 |
| >2-50 | 2% | 1:50 |
| >50-100 | 4% | 1:25 |
| >100-150 | 6% | 1:16.67 |
| >150-300 | 10% | 1:10 |
| >300 | 20% | 1:5 |
Again, this is done per Trading Instrument, so if a client has positions open across multiple Instruments, the leverage will be calculated separately on each symbol. For example, if a trader has a position in Silver and then starts trading Gold, his/her margin requirement for Gold will not be affected by the existing Silver positions.
Example 1 Metals
Consider a USD account with 1 Buy (or Sell) lot of Gold at spot price of 1.500 USD.
| Lots | Margin Requirement | Margin Calculation | Margin USD |
|---|---|---|---|
| 1 | 0.5% | 0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) | $750.00 |
| 1 | Total Margin Required (1 Lot Gold) | $750.00 | |
Example 2 Metals
Consider a USD account with 50 Buy (or Sell) lots of Gold at spot price of 1.500 USD.
| Lots | Margin Requirement | Margin | Margin USD |
|---|---|---|---|
| 1 | 0.5% | 0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) | $750.00 |
| 1 | 1% | 1%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) | $1,500.00 |
| 48 | 2% | 2%(margin req.) * 100(oz) * 48(lots) * 1500(price of gold spot) | $144,000.00 |
| 50 | Total Margin Required (50 Lots Gold) | $146,250.00 | |
Example 3 Metals
Consider a USD account with 150 Buy (or Sell) lots of Gold at spot price of 1.500 USD.
| Lots | Margin Requirement | Margin | Margin USD |
|---|---|---|---|
| 1 | 0.5% | 0.5%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) | $750.00 |
| 1 | 1% | 1%(margin req.) * 100(oz) * 1(lots) * 1500(price of gold spot) | $1,500.00 |
| 48 | 2% | 2%(margin req.) * 100(oz) * 48(lots) * 1500(price of gold spot) | $144,000.00 |
| 50 | 4% | 4%(margin req.) * 100(oz) * 50(lots) * 1500(price of gold spot) | $300,000.00 |
| 50 | 6% | 6%(margin req.) * 100(oz) * 50(lots) * 1500(price of gold spot) | $450,000.00 |
| 150 | Total Margin Required (150 Lots Gold) | $896,250.00 | |
Futures Margin Requirements
| Open Lots | Margin Requirement |
|---|---|
| 0-50 | Standard Margin Per Instrument |
| >50-100 | Margin*2 |
| >100-150 | Margin*5 |
| >150-300 | Margin*8 |
| >300 | Margin*10 |
Example 1 Futures
Consider a USD account with 10 Buy (or Sell) lots of Dow Jones Futures
| Lots | Margin Per 1 Lot | Margin |
|---|---|---|
| 10 | $1000 | 10(Lots) * $1,000(margin per lot) = 10,000 USD |
Example 2 Futures
Consider a USD account with 250 Lots of Nasdaq Futures
| Lots | Margin Per 1 Lot | Margin |
|---|---|---|
| 50 | $500 | 50(Lots)*$500(margin per lot)= 25,000 USD |
| 50-100 | $500*2 | 50(Lots)*$ 500(margin per lot)*2(margin multiplier)= 50,000 USD |
| 100-150 | $500*5 | 50(Lots)*$500(margin per lot)*5(margin multiplier)= 125,000 USD |
| 150-250 | $500*8 | 100(Lots)*$500(margin per lot)*8(margin multiplier)= 400,000 USD |
| Total Margin Required = 600,000 USD | ||
Example 3 Futures
Consider a USD account with 50 Buy lots of Nasdaq Futures, and wants to trade 250 Sell lots of Nasdaq Futures ; Margin required will be computed on the 250 Sell lots, i.e. Total Margin Required = 600,000 USD.