Change of the necessary margin
The following contents take effect on Sep 4, 2017 Monday
Opening a new position
FX: Necessary Margin = Open Price × Contract Size × 1% ;
Commodity CFD: Necessary Margin = Open Price × Contract Size × 2% ;
Securities CFD:Necessary Margin = Open Price × Point Value × 2% ;
At the time of rollover on each trading day
FX: Necessary margin for maintenance =Close Price × Contract Size × 1% ;
Necessary Margin for maintenance = Close Price × Contract Size × 2% ;
Necessary Margin for maintenance = Close Price × Point Value × 2% ;
The necessary margin for maintenance will be the necessary margin of the open position in next trading day.
If the open position is long position, the close price will use the ask price.
Hedge Position: When you hold a short position and a long position of the product, the necessary margin for maintenance will be calculated based on the turnover of the short position or that of the long position, whichever is greater.(Turnover=Open Price × Contract Size/ Point Value)
The Contract size and point value of the products can refer to under link:
Commodity CFD: http://www.tokincfd.com/en/product.asp?channel=16&class=47&id=556
Securities CFD: http://www.tokincfd.com/en/product.asp?channel=16&class=47&id=557
Notes about margin
Current Margin Percentage = Effective Margin / Necessary Margin.
Maintenance rate of necessary margin for maintenance = Effective margin/ Necessary margin for maintenance.
Effective margin: Margin balance plus/minus floating profit/loss.
Necessary margin: Necessary margin for opening a new position.（At the time of rollover, the open price will change to the close price in the calculation of necessary margin for an existing position, so after rollover .）
Necessary margin for maintenance: Necessary margin for maintaining an existing position at the time of rollover.
Variation Margin: Free use margin (Variation Margin = Effective margin - Necessary margin)。
About Auto Settle
About auto settle can refer the following link.
Calculation of margin trading
In general cases
For example： you buy 1 lot of EURUSD at 1.12000, and the close price(Ask price) at rollover is 1.12500:
1. Necessary margin of opening a position = 1.12000(Open Price) ×10000×1%=112 USD
2. Necessary margin for maintenance at rollover =1.12500（close price）×10000×1%=112.50 USD.
3. Next trading day’s necessary margin will use the necessary margin for maintenance which calculated by close price 112.50 USD.
In case of hedge position
For example: You buy 1 lot of EURUSD at 1.12000 and then sell 1 lot of EURUSD at 1.12020:
1. Turnover of the long position: 1.12000×10000=11200 USD
2. Turnover of the short position: 1.12020×10000=11202 USD
Then, 11202 USD, turnover of the short position, will be the standard for calculation the necessary margin for maintenance. That is, the turnover is 11202×1%×1lot＝112.02 USD.
Existing position and existing limit order
All accounts are within the scope of this implementation. Existing positions and existing limit orders before implementation are all object of the implementation.
Date of implementation
Implemented from Sep 4, 2017.