Margin Requirements

Floating leverage is set for alpari.demo, alpari.classic, alpari.systematic, alpari.pamm and alpari.premium accounts.

The floating leverage is determined by the size of the total nominal value of all open client positions. The nominal value is the value of a contract in USD, e.g. the nominal value of 10 lots EURUSD at 1.3500 is 1,350,000 USD.

How to Calculate Margin Requirements with Floating Leverage: 

1. If the total nominal value of a client's open positions is less than 3,000,000 USD, the margin requirements are calculated using a leverage of 1:500 (on alpari.pamm accounts, the leverage is 1:100).

2. An open position amounting from 3,000,000 USD to 5,000,000 USD has a leverage of 1:500 for the first 3,000,000 USD and a leverage of 1:200 for the remainder. 

3. An open position amounting from 5,000,000 USD to 10,000,000 USD has a leverage of 1:500 for the first 3,000,000 USD, a leverage of 1:200 for the next 2,000,000 and a leverage of 1:100 for the remaining 5,000,000 USD. 

4. For open positions above 10,000,000 USD, the first 3,000,000 USD has a leverage of 1:500, the next 2,000,000 has a leverage of 1:200, the next 5,000,000 USD has a leverage of 1:100. Everything above has a leverage of 1:33.

Note: The total nominal value of the positions provided in the table is 12,000,000 USD.

• Read Close 1

  Example 1
  

  There are two open positions, 40 lots GBPUSD at 1.4600 and 50 lots EURUSD at 1.3300. The nominal value of 40 lots GBPUSD at 1.4600 is 40 * 100,000 * 1.4600 = 5,840,000 USD. The nominal value of 50 lots EURUSD at 1.3300 is 50 * 100,000 * 1.3300 = 6,650,000 USD. The total nominal value of these positions is 12,490,000 USD

  In this case, the margin requirements are calculated as follows:

  The total nominal value amounts to 12,490,000 USD, which is more than 10,000,000 USD. The first 3,000,000 USD will have a leverage of 1:500, the next 2,000,000 USD a leverage of 1:200, the next 5,000,000 USD a leverage of 1:100 and the remainder will be leveraged 1:33.
  The Margin equals: 3,000,000/500 + 2,000,000/200 + 5,000,000/100 + 2,490,000/33 = 141,454.54 USD.

  Nominal Value Range	Provided Leverage	Margin
  0 - 3,000,000 USD	1:500	6,000 USD
  3,000,000 - 5,000,000 USD	1:200	10,000 USD
  5,000,000 - 10,000,000 USD	1:100	50,000 USD
  Above 10,000,000 USD	1:33	75,454.54 USD
  Total:	N/A	141,454.54 USD

• Read Close 2

  Example 2

  There are two open positions, 30 lots USDJPY at 91.10, and 20 lots GBPUSD at 1.4500. The nominal value of 30 lots USDJPY at 91.10 is 30 * 100,000 = 3,000,000 USD. The nominal value of 20 lots GBPUSD at 1.4500 is 20 * 100,000 * 1.4500 = 2,900,000 USD. The total nominal value of these positions is 5,900,000 USD.

  In this case, the margin requirements are calculated as follows:

  The total nominal value amounts to 5,900,000 USD, which is more than 5,000,000 USD but less than 10,000,000 USD. The first 3,000,000 USD will have a leverage of 1:500, the next 2,000,000 USD a leverage of 1:200 and the remainder will be leveraged 1:100.
  The Margin equals: 3,000,000/500 + 2,000,000/200 + 900,000/100 = 25,000 USD.

  Nominal Value Range	Provided Leverage	Margin
  0 - 3,000,000 USD	1:500	6,000 USD
  3,000,000 - 5,000,000 USD	1:200	10,000 USD
  5,000,000 - 10,000,000 USD	1:100	9,000 USD
  Above 10,000,000 USD	1:33	0 USD
  Total:	N/A	25,000 USD

Important! If open positions are modified, or positions on currency pairs (Forex) are opened or closed on a Friday during the 1 hour before the trading session closes, leverage changes to 1:100 on all open and newly opened positions on currency pairs (Forex) for alpari.micro and alpari.classic accounts. After the trading session closes, leverage will be set according to your volume of trading positions.

You can find the Nominal Value Range for Deposit Currencies in EUR in the following table:

Please refer to the Help section for more details on calculating margin requirements and floating leverage.

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