Margin Adjustment
Margin Adjustment is charged only when the Client Trading Account’s currency is different from the underlying asset's quoted currency. Margin Adjustment is set at a maximum of 0.3% and is applied to opening and closing a trade. The fee is reflected and realised once the position is closed.
Please refer to the example in the Specifics of Trading Operations Execution for more information.
For example:
You want to buy long 1000 (100*10 multiplier) EURUSD, which is quoted in US dollars, while your account is denominated in Euros.
EURUSD rate at opening: 1.11500
EURUSD rate at closing: 1.12500
If:
The margin requirement is 3.333%
The margin adjustment is 0.3%
Used Margin: volume * margin requirement = 100 * 10 * 3.333% = 33.33 EUR
Margin Adjustment when opening the position:
Margin Used * Margin Adjustment Fee = 33.33 * 0.3% = - 0.10 EUR
Commission for opening the position: 100 * 10 * 0.010% 1= 0.10 EUR
Margin Adjustment when closing the position:
Margin Used * Margin Adjustment Fee = 33.33 * 0.3% = - 0.10 EUR
Total Margin Adjustment: (-0.10) + (-0.10) = -0.20 EUR
Closed P/L: ((Closing Price/Opening Price - 1) * volume) - Commission for opening = ((1.12500/1.11500 - 1) * 1000) – 0.10 = 8.87 EUR
Closed P/L after margin adjustment: closed P/L + margin adjustment = 8.87 + (- 0.20) = 8.67 EUR
Margin Adjustment is charged only when the Client Trading Account’s currency is different from the underlying asset's quoted currency. Margin Adjustment is set at a maximum of 0.3% and is applied to opening and closing a trade. The fee is reflected and realised once the position is closed.
Please refer to the example in the Specifics of Trading Operations Execution for more information.
For example:
You want to buy long 1000 (100*10 multiplier) EURUSD, which is quoted in US dollars, while your account is denominated in Euros.
EURUSD rate at opening: 1.11500
EURUSD rate at closing: 1.12500
If:
The margin requirement is 3.333%
The margin adjustment is 0.3%
Used Margin: volume * margin requirement = 100 * 10 * 3.333% = 33.33 EUR
Margin Adjustment when opening the position:
Margin Used * Margin Adjustment Fee = 33.33 * 0.3% = - 0.10 EUR
Commission for opening the position: 100 * 10 * 0.010% 1= 0.10 EUR
Margin Adjustment when closing the position:
Margin Used * Margin Adjustment Fee = 33.33 * 0.3% = - 0.10 EUR
Total Margin Adjustment: (-0.10) + (-0.10) = -0.20 EUR
Closed P/L: ((Closing Price/Opening Price - 1) * volume) - Commission for opening = ((1.12500/1.11500 - 1) * 1000) – 0.10 = 8.87 EUR
Closed P/L after margin adjustment: closed P/L + margin adjustment = 8.87 + (- 0.20) = 8.67 EUR