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Cross Margins

Leverage Available Margin Requirements

Cross is a leveraged product, meaning that it provides a trader with the ability to control large amounts of capital using very little money; the higher the leverage, the higher the level of risk.

Margin requirements differ by currency pair and may be subject to change according to the underlying liquidity and volatility of the currency pair. For this reason the most liquid currency pairs (the majors) in most cases require a lower margin requirement.

Golden Group offer tiered margin methodology as a mechanism to manage political and economic events that may lead to the market becoming volatile and changing rapidly.

Margin requirements may be changed without prior notice. Golden Group reserves the right to increase margin requirements for large position sizes, including client portfolios considered to be of high risk.

Margin Calls

You must always keep the margin requirement not lower than the margin requirement shown on the trading platform.
At any time, when you are held by the foreign exchange needed for the open interest margin exceeds the margin trading available funds in the account, you will default,
you need to take measures to meet the margin requirements. This can be achieved in the following ways:

  • Maintenance margin ratio below 70%,need margin call

  • Maintenance margin ratio below 20% ,first contract will be automatically settle.Suppose buy 5 lots of EUR/GBP on Wednesday,buy 1 lot of EUR/GBP on Thursday ,total margin $6,000 USD,if initial margin below $1200 USD (20%), 5 lots of EUR/GBP will be automatically settle by system. Note: In case of volatile market, may not be able to perform at less than 20% immediately liquidation maintenance margin may fall below 20% of initial margin. the customer is necessary to understand this beyond the control of the Company.

  • After the closing time of Fridays or the days before long holiday, the maintenance margin ratio is 200% . if the maintenance margin ratio falls below 200%, first contract will be automatically settle. until maintenance margin ratio above 200%. Example: Suppose today Monday, buy 5 lots of EUR/GBP;on Wednesday new position, buy 1 lot of EUR/GBP on Thursday,initial margin is $12000 usd, if the closing time of Fridays or before holiday, the maintenance margin ratio falls below less than $ 12,000, 5 lots of EUR/GBP will be automatically settle.

If the required margin exceeds the available security deposit, you will have the risk of being forced to liquidate the warehouse, and Golden Group may replace all the margin positions with you.

Risk Warning 

Margin Trading carries a high level of risk to your capital with the possibility of losing more than your initial investment and may not be suitable for all investors.
Ensure you fully understand the risks involved and seek independent advice if necessary.

See our Risk Warning.


Cross Risk Warning

 

Cross is categorised as a red product as it is considered an investment product with a high complexity and a high risk.