Commodities Margins

Close-out level for client accounts is set at 50%

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 1:200 has Long position for 420 lots EURUSD.

Margin requirement for this position is 290 000 EUR

• 150 000 EUR for the first 300 lots with 1:200 leverage
• 100 000 EUR for the next 100 lots with 1:100 leverage
• 40 000 EUR for the final 20 lots with 1:50 leverage

The next trade Buy 20 lots EURUSD will consume 70 000 EUR margin

• 10 000 EUR for the first 5 lots – bringing the Used margin to 300 000 EUR
• 60 000 EUR for the next 15 lots – leverage 1:25 (coefficient 0.5 applied to 1:50 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 1:200 has Long position for 120 lots Ger30 (at price 13000)
and Short position in GOLD for 40 lots (at price 1770).

Total used margin requirement is 290 000 EUR

• 130 000 EUR for Long position for the first 80 lots in Ger30 at 1:200 leverage
• 130 000 EUR for Long position for the final 40 lots in Ger30 at 1:100 leverage
• 35 400 USD Short position in GOLD for 40 lots at 1:200 leverage (30 000 EUR at EURUSD = 1.1800)

The next trade Buy 40 lots EURUSD will consume 30 000 EUR margin

• 10 000 EUR for the first 20 lots at leverage 1:200 – bringing the Used margin to 300 000 EUR
• 20 000 EUR for the next 20 lots – leverage 1:100 (coefficient 0.5 applied to 1:200 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.