* Required margin is freely available money required to have a position opened. E.g., with the leverage equal to 1:200, the amount of the required margin will amount to 0.5% of the transaction value; with the leverage equal to 1:33, the required margin will amount to 3%; with the leverage equal to 1:20, the required margin will amount to 5%; etc.
** The level of required margin is the leverage (debt-to-equity) ratio (account balance + floating income – floating losses) expressed in percentage points.
*** Funds deposited on trade account (deposit) are funds available at the trade account, including open positions (account balance + floating income – floating losses).
If a client fails to meet the above-listed margin requirements (in particular, the requirement regarding the maintenance of the minimum margin level), the unprofitable positions with highest loss shall be closed by BCS. To prevent this from happening, it is recommended that a client close some of his/her loss-incurring positions or open a hedge position.
A client’s positions shall be subject to mandatory closing at the stop-out level if the level of the required margin goes down below 20%.
Margin requirements for hedge positions
The size of hedge positions (i.e. positions contrary to those, which have already been opened) cannot exceed the amount of current free cash (free margin) available in a client’s trade account.