Hedged margin level changes

10 May 2018

We would like to notify you that starting from 21/05/18 new changes for fully or partly hedged positions will be applied. These changes will come into force for the accounts opened on MT4 as well as for MT5 accounts. New rates of hedged margin equal to 50% (for the currency pairs trading) and 100% (for the rest of instruments) of nominal contract margin for the hedged volume. In other words, if there are two positions of same volume, one is buy order and second is sell which are 2 lots in total, the margin requirements will be as per 1 lot in accordance to the formulae: (1+1) * 50% = 1. Previously the hedged margin used to be equal to 0.

Here is one more example: if there is a 1.5 lot as buy order and 0.7 lot as sell order placed by the same contract, the margin requirement will be equal to 1.15 lot in accordance to the formulae: (1.5-0.7) +0.7* 50%. Previously, the hedged margin used to be equal to 0.8 lot.

This is due to the general market environment changes and changes of liquidity provider operating conditions who has never offered zero margin for the hedged (locked) positions. These changes affect both newly and previously placed orders that could lead to forced positions closing at the current prices in case there will be not enough margin to keep such positions opened right after the changes are applied. We kindly advise you to take this information into account during your trading and take all the needed measures to keep the hedged positions in the market, if you have such.

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