Portex Markets is introducing a new tiered margin requirement across a number of products. This means that the margin required to support open positions shall be determined by the size of your net market position. The larger the positions, the more margin will be required to support your trades.

To illustrate how tiered margin requirements work, please see the following example below.

EURUSD

The margin rates charged for EURUSD have been provided in the table below:

  Tier 1 Tier 2 Tier 3 Tier 4
No.of Lots Margin Charged No. of Lots Margin Charged No. of Lots Margin Charged No. of Lots Margin Charged
EURUSD 0 – 150 0.25% 150 – 300 0.50% 300 – 600 2.00% 600+ 4.00%

Tier 1
The first 150 lots on the account are charged at the standard rate of 0.25%, therefore the margin charged will be as follows:
150 * 100 000 EUR * 0.25% = EUR 37,500
Margin Requirement = EUR 37,500 * 1.07375 = $40,265.63

Order Time Type Size Symbol Price
29705109 2017.01.26.08:24:03 Sell 150.00 eurusd.test 1.07375
Balance: 80 459 234.54 USD Equity: 80 458 334.54 Margin: 40 265.63 Free margin: 80 418 068.92
Margin level: 199818.91%

Once you start to trade more than 150 lots this is where the tiered margin comes in and you are charged higher margin to hold larger positions, please see the example below for tier 2 – 4 of margin charged:

Tier 2
The first 150 lots have been charged at $40,265.63, therefore the 2nd 150 lots on the account will be charged as follows:
$120,796.31 – $40,265.63 = $80,530.68
This can be checked as follows:
150 * 100 000 EUR * 0.50% = EUR 75,000
Margin Requirement = EUR 75,000 * EURUSD Rate = $80,530.68

Order Time Type Size Symbol Price
29705109 2017.01.26.08:24:03 Sell 150.00 eurusd.test 1.07375
29705528 2017.01.26.08:24:03 Sell 150.00 eurusd.test 1.07374
Balance: 80 459 234.54 USD Equity: 80 449 784.54 Margin: 120 796.31 Free margin: 80 328 988.23
Margin level: 66599.54%

Tier 3
The first 300 lots have been charged at $120,796.31, therefore the next 300 lots on the account are charged as follows:
$765,094.97 – $120,796.31 = $644,298.66
This can be checked as follows:
300 * 100 000 EUR * 2.00% = EUR 600,000
Margin Requirement = EUR 600,000 * EURUSD Rate = $644,298.66

Order Time Type Size Symbol Price
29705109 2017.01.26.08:24:03 Sell 150.00 eurusd.test 1.07375
29705528 2017.01.26.08:24:03 Sell 150.00 eurusd.test 1.07374
29706314 2017.01.26.08:24:03 Sell 300.00 eurusd.test 1.073389
Balance: 80 459 234.54 USD Equity: 80 435 684.54 Margin: 765 094.97 Free margin: 79 670 589.57
Margin level: 10513.16%

Tier 4
The final tier takes into consideration anything above 600 lots; therefore where there is 1000 lots on the account, the margin is charged as follows:
$2,483,223.78 – $765,094.97 = $1,718,128.81
This can be checked as follows:
400 * 100 000 EUR * 4.00% = EUR 1,600,000
Margin Requirement = EUR 1,600,000 * EURUSD Rate = $1,718,128.81

Order Time Type Size Symbol Price
29705109 2017.01.26.08:24:03 Sell 150.00 eurusd.test 1.07375
29705528 2017.01.26.08:33:38 Sell 150.00 eurusd.test 1.07374
29706314 2017.01.26.08:59:58 Sell 300.00 eurusd.test 1.073389
29706451 2017.01.26.09:03:08 Sell 400.00 eurusd.test 1.07384
Balance: 80 459 234.54 USD Equity: 80 439 884.54 Margin: 2 483 223.97 Free margin: 77 956 660.76
Margin level: 3239.33%

XAUUSD

The margin rates charged for XAUUSD have been provided in the table below:

  Tier 1 Tier 2 Tier 3 Tier 4
No.of Lots Margin Charged No. of Lots Margin Charged No. of Lots Margin Charged No. of Lots Margin Charged
XAUUSD 0 – 20 0.50% 20 – 50 1.00% 50 – 200 2.50% 200+ 5.00%

Tier 1
The first 20 lots on the account are charged at the standard rate of 0.50%, therefore the margin charged will be as follows:
Margin Requirement = 20 Lots * 0.5% = $10,000

Order Time Type Size Symbol Price
29706956 2017.01.26.09:20:16 Sell 20.00 xauusd.test 1197.97
Balance: 80 451 754.54 USD Equity: 80 461 634.54 Margin: 10 000.00 Free margin: 80 451 634.54
Margin level: 804616.35%

Once you start to trade more than 20 lots, this is where the tiered margin comes in and you are charged a higher rate of margin to hold larger positions. Please see the example below for tier 2 – 4 of margin charged:

Tier 2
After being charged $10,000 for holding the first 20 lots, the next tier takes into consideration lots 20 – 50. If you now trade another 30 lots (total now 50 lots on the account), you will be charged the following margin:
Margin Requirement = 30 Lots * 1.00% = $30,000

Order Time Type Size Symbol Price
29706956 2017.01.26.09:20:16 Sell 20.00 xauusd.test 1197.97
29708167 2017.01.26.09:43:28 Sell 30.00 xauusd.test 1195.40
Balance: 80 422 884.54 USD Equity: 80 428 974.54 Margin: 40 000.00 Free margin: 80 388 974.54
Margin level: 201072.44%

Tier 3
Tier 3 incorporates the next 150 lots and this is charged at 2.5% margin rate. You will be charged the following margin:
Margin Requirement = 150 Lots * 2.50% = $375,000

Order Time Type Size Symbol Price
29706956 2017.01.26.09:20:16 Sell 20.00 xauusd.test 1197.97
29708167 2017.01.26.09:43:28 Sell 30.00 xauusd.test 1195.40
29708299 2017.01.26.09:45:09 Sell 150.00 xauusd.test 1195.05
Balance: 80 422 884.54 USD Equity: 80 445 574.54 Margin: 415 000.00 Free margin: 80 030 574.54
Margin level: 19384.48%

Tier 4
Tier 4 incorporates anything above 200 lots and this is charged at 5.0% margin rate. You will be charged the following margin:
For the purpose of this example there is 300 lots on the account.
Margin Requirement = 100 Lots * 5.00% = $500,000

Order Time Type Size Symbol Price
29706956 2017.01.26.09:20:16 Sell 20.00 xauusd.test 1197.97
29708167 2017.01.26.09:43:28 Sell 30.00 xauusd.test 1195.40
29708299 2017.01.26.09:45:09 Sell 150.00 xauusd.test 1195.05
29709121 2017.01.26.09:57:15 Sell 100.00 xauusd.test 1192.17
Balance: 80 422 884.54 USD Equity: 80 470 874.54 Margin: 915 000.00 Free margin: 79 555 874.54
Margin level: 8794.63%

DOW30

The margin rates charged for DOW30 has been provided in the table below to illustrate how the number of CFDs traded will change the margin that you will be charged:

  Tier 1 Tier 2 Tier 3
No.of Lots Margin Charged No. of Lots Margin Charged No. of Lots Margin Charged
DOW30 0 – 750 0.50% 750 – 1500 1.00% 1500+ 2.00%

Tier 1
The first 750 CFDs on the account are charged at the standard rate of 0.5%, therefore the margin charged will be as follows:
Margin Requirement = 750 CFDs * 20119 * 0.50% = $75,446.25

Order Time Type Size Symbol Price
29709412 2017.01.26.10:02:36 Sell 750.00 dow30.test 20119
Balance: 80 461 814.54 USD Equity: 80 460 314.54 Margin: 75 446.25 Free margin: 80 384 868.29
Margin level: 106645.88%

Once you start to trade more than 750 CFDs this is where the tiered margin comes in and you are charged a higher rate of margin to hold larger positions. Please see the example below for the next 2 tiers of margin charged:

Tier 2
After being charged $75,446.25 for the first 750 CFDs of the product, the next 750 CFDs will be charged at a higher rate which can be seen from the table above:
Margin Requirement = 750 * 20120 * 1.00% = $150,900.00

Order Time Type Size Symbol Price
29709412 2017.01.26.10:02:36 Sell 750.00 dow30.test 20119
29709557 2017.01.26.10:06:39 Sell 750.00 dow30.test 20120
Balance: 80 461 814.54 USD Equity: 80 453 564.54 Margin: 226 346.25 Free margin: 80 227 218.29
Margin level: 35544.47%

Tier 3
The final tier will take into consideration 1500+ CFDs on the account. For the purpose of this example, another 750 CFDs has been added, making the total on the account 2,250 CFDs:
Margin Requirement = 750 * 20120 * 2.00% = $301,800.00

Order Time Type Size Symbol Price
29709412 2017.01.26.10:02:36 Sell 750.00 dow30.test 20119
29709557 2017.01.26.10:06:39 Sell 750.00 dow30.test 20120
29709701 2017.01.26.10:11:14 Sell 750.00 dow30.test 20120
Balance: 80 461 814.54 USD Equity: 80 454 314.54 Margin: 528 146.25 Free margin: 79 926 168.29
Margin level: 15233.34%
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