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What is the Margin Factor?

Posted By Robert On Thursday, February 12th, 2015 With 0 Comments

The margin factor is the initial margin required to open a position on an instrument. It is the minimum amount of funds you need to have in your available trading resources to trade. You can find the margin factor on the ‘Info’ button on the right hand side of the contract listing on the platform.

Can the margin required change?

The margin required is at the discretion of the provider and can be changed, although rarely, at any time by the trading desk.

Who is responsible for managing client margin requirements?

Clients are solely responsible for managing their margin requirements. Clients must ensure that there are sufficient funds in their account balance to maintain all open positions. If there are not enough funds available in your balance to support your open positions, you run the risk that some or all of your positions will be closed by the trading desk.

How does the provider check my positions compared to my margin?

The provider will automatically calculate the required margin for a given position. The account summary provides you with information on your deposited margin, as well as the margin currently available for trading. This is constantly displayed on your monitor.

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