Commodities Margins

Close-out level for client accounts is set at 30%

Maintaining Positions for Spot Commodities

Spot commodity contracts are subject to overnight swap rates. The overnight swap rate is dependent on the ratio of the difference in price of second nearby month and first nearby month of the futures contract for the relative commodity versus the number of days between the first nearby month and the previous first nearby month. ActivTrades will apply the swap rates to positions in Spot commodity contracts left overnight using the above ratio and apply markup in consideration of markup applied by its liquidity providers.

For the actual size of the swap rates applied for Spot commodity contract on any given day, please check the symbol specification in your trading account.

 

Please find below the Used Margin thresholds for customers with ActivTrader platform. If the used margin in client’s accounts exceeds the thresholds set below, the respective coefficient will be applied to the leverage for each of the trading instruments, for the part of the position exceeding the threshold itself.

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Example:

A client with EUR account and leverage 1:400 has Long position for 340 lots EURUSD.

Margin requirement for this position is 140 000 EUR

• 50 000 EUR for the first 200 lots with 1:400 leverage
• 50 000 EUR for the next 100 lots with 1:200 leverage
• 40 000 EUR for the final 40 lots with 1:100 leverage

The next trade Buy 20 lots EURUSD will consume 30 000 EUR margin

• 10 000 EUR for the first 10 lots – bringing the Used margin to 150 000 EUR
• 20 000 EUR for the next 10 lots – leverage 1:50 (coefficient 0.5 applied to 1:100 leverage)

A client can have positions in different instruments that again bring the used margin above the thresholds specified. A client with EUR account and leverage 1:400 has Long position for 90 lots Ger30 (at price 11000) and Short position in GOLD for 100 lots (at price 1380). Total used margin requirement is 140 000 EUR

• 27 500 EUR for Long position for the first 40 lots in Ger30 at 1:400 leverage
• 55 000 EUR for Long position for the next 40 lots in Ger30 at 1:200 leverage
• 27 500 EUR for Long position for the final 10 lots in Ger30 at 1:100 leverage
• 34 500 USD Short position in GOLD for 100 lots at 1:400 leverage (30 000 EUR at EURUSD = 1.1500)

The next trade Buy 80 lots EURUSD will consume 30 000 EUR margin

• 10 000 EUR for the first 40 lots at leverage 1:400 – bringing the Used margin to 150 000 EUR
• 20 000 EUR for the next 40 lots – leverage 1:200 (coefficient 0.5 applied to 1:400 leverage)

If a client has more than 1 account, the Used margin thresholds are reduced proportionately to the number of accounts. Thus a client with 2 accounts in EUR will have Used margin EUR threshold for each of the accounts reduced by half. ActivTrader Platform will display the exact margin requirement for each position that clients intend to open.