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The margin trading available makes use of a tiered margin structure. In this structure, larger positions are subject to higher incremental margin rates.
For example, for USDJPY the margin rates are:
|
Tier |
Net open position (USD) |
Margin |
|
1 |
< 5 mil |
2% |
|
2 |
5-10 mil |
5% |
|
3 |
> 10 mil |
20% |
A position size of 7 mil (70 lots) in USDJPY would have a margin requirement of USD 200,000
This is calculated as: (units in tier one x tier one margin rate) + (units in tier two x tier two margin rate) + (units at tier three x tier three margin rate).
|
Tier |
Net open position (USD) |
Margin rate |
Margin total (units x margin rate) |
|
1 |
5,000,000 |
2% |
5,000,000 x 2% = $100,000 |
|
2 |
2,000,000 |
5% |
2,000,000 x 5% = $100,000 |
|
Total |
7,000,000 |
$100,000 + $100,000 = $200,000 |