TIER 1 |
Assume you open a Position #1 Buy 7 lots EURUSD 1.2312 for a USD Denominated Account, with a Leverage 1:500.
The notional value is: 7 * 100 000 * 1.2312 = 861,840 USD. Since the notional value of 861,840 USD is not greater than 1,000,000 USD, the Leverage offered is 1:500.
Margin Requirements = 861,840 / 500 = 1,723.68 USD
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You open a position # 2 Buy 5 lots EURUSD 1.2350
The notional value is: 5 * 100 000 * 1.2350 = 617,500 USD.
The aggregate notional value of Position #1 and Position #2 is:
861,840 (for position # 1) + 617,500 (for position # 2) = 1,479,340 USD.
In this case, the aggregate notional value of open positions is greater than 1,000,000 USD, but less than 2,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, and a leverage of 1:200 for the remaining 479,340 USD.
Margin Requirements = [(1,000,000 / 500) + (479,340 / 200)] = 4,396.70 USD
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Assume you open a Position #3 Buy 20 lots EURUSD 1.2400
The notional value is: 20 * 100 000 * 1.2400 = 2,480,000 USD.
The aggregate notional value of all three positions is:
861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) = 3,959,340 USD.
Now the aggregate notional value of open positions is greater than 2,000,000 USD but less than 5,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD and a leverage of 1:100 for the remaining amount of 1,959,340 USD.
Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (1,959,340 / 100)] = 26,593.40 USD
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Assume you open a Position #4 Buy 30 lots EURUSD 1.2500.
The notional value is: 30 * 100 000 * 1.2500 = 3,750,000 USD.
The aggregate notional value of all four positions is:
861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) + 3,750,000 (for position #4) = 7,709,340 USD.
Now the aggregate notional value of open positions is greater than 5,000,000 USD but less than 10,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD, a leverage of 1:100 for the next 3,000,000 USD and a leverage of 1:50 for the remaining amount of 2,709,340 USD.
Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (3,000,000 / 100) + (2,709,340 / 50)] = 91,186.80 USD
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Assume you open a Position #5 Buy 30 lots EURUSD 1.2300.
The notional value is: 30 * 100 000 * 1.2500 = 3,690,000 USD.
The aggregate notional value of all five positions is:
861,840 (for position # 1) + 617,500 (for position # 2) + 2,480,000 (for position #3) + 3,750,000 (for position #4) + 3,690,000 (for position #5) = 11,399,340 USD.
Now the aggregate notional value of open positions is greater than 10,000,000 USD.
Thus, a leverage of 1:500 is provided for the first 1,000,000 USD, a leverage of 1:200 for the next 1,000,000 USD, a leverage of 1:100 for the next 3,000,000 USD and a leverage of 1:50 for 5,000,000 USD and a leverage of 1.20 for the remaining amount of 1,399,340 USD.
Margin Requirements = [(1,000,000 / 500) + (1,000,000 / 200) + (3,000,000 / 100) + (5,000,000 / 50) + (1,399,340 / 20)] = 161,136.80 USD
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