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.
|USD, GBP, CAD
|AUD, DKK, JPY, NOK, NZD, SEK, SGD
|CHF, CNH, CZK, HKD, HUF, ILS
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:
- Determine the base currency equivalent of the net liquidation values in the account.
- Determine the haircut (margin requirement) rate for each currency pair.
- Sort the haircut rates from lowest to highest.
- Determine the largest negative net liquidation value.
- 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.
- Repeat steps 4 and 5 until all negative net liquidation values have been offset.