Forex Margin

All assets in each currency are combined to determine a single net asset value in that currency. Separate margin requirement calculations are used when determining the amount of funds available for withdrawal and the amount of funds available for trading. When determining the amount of funds available for withdrawal, the margin for non-base currency assets is determined by taking the margin rate from the following table times the net asset value in the currency. There is no margin for base currency assets.

The following are the margin requirements for each currency.

  Leverage Rate Margin Requirement % 1
AUD 33.33:1 3%
CAD 40.00:1 2.5%
CHF 20.00:1 5%
CNH 20.00:1 5%
CZK 20.00:1 5%
DKK 6.67:1 15%
EUR 33.33:1 3%
GBP 40.00:1 2.5%
HKD 20.00:1 5%
HUF 20.00:1 5%
ILS 20.00:1 5%
JPY 33.33:1 3%
KRW 10.00:1 10%
MXN 16.67:1 6%
NOK 30.03:1 3.33%
NZD 30.03:1 3.33%
RUB 5.00:1 20%
SEK 30.03:1 3.33%
SGD 20.00:1 5%
USD 40.00:1 2.5%

When determining the amount of funds available for trading purposes, margin is required only on negative net liquidation values. The margin requirement is calculated as follows:

  1. Determine the base currency equivalent of the net liquidation values in the account.
  2. Determine the haircut (margin requirement) rate for each currency pair.
  3. Sort the haircut rates from lowest to highest.
  4. Determine the largest negative net liquidation value.
  5. Starting with the positive new liquidation value base currency equivalent with the lowest haircut rate, calculate the margin requirement on that portion which may be used to offset the negative net liquidation value.
  6. Repeat steps 4 and 5 until all negative net liquidation values have been offset.
  • US IRA margin accounts are never allowed to borrow non-base currencies.

  1. Margin Requirement % = 1/Leverage Rate.