MARGIN REQUIREMENTS AND LEVERAGE



Margin Requirements and Principles


GCIs margin requirements are the most advantageous in the industry.


Standard Forex Account: $500 per lot on all instruments. It is equivalent to approximately 0.5% margin or 200:1 leverage.


Mini Forex Account: $50 per lot on all instruments. It is equivalent to approximately 0.5% margin or 200:1 leverage.


Share CFD Account: 2% on individual shares, $500 per lot on indices and other instruments. Click here for exact margin requirements on each product.


Mini Share Account: 2% on individual shares, $50 per lot on indices and other instruments. Click here for exact margin requirements on each product.


GCI is able to maintain these low margin requirements by enabling automatic liquidation of positions once a margin call is reached. This policy also provides for the protection of client account balances in the event of rapid price movements.


A margin call is reached if a clients account equity falls below the required margin. For example, in a Standard Forex account, if a client has 10 lots of open positions a margin call will occur if account equity drops below $5,000. At this point, some or all of the clients open positions will be closed immediately at current prices.


Traders are also able to monitor both usable margin and used margin in real-time from the "Account Information" window of the online trading platform. Positions will be automatically closed once usable margin drops below zero. GCI encourages clients to avoid margin calls by either using stop loss orders or maintaining adequate funds in the account relative to position size.

More on CFD Margins

Share CFDs are traded in lots that are equivalent in size to 1,000 shares each. For example, a trader can purchase 1 lot of a CFD on IBM at $90, for a total position value of $90,000. The required margin for this trade is $1,800.

Standard Forex and Share CFD Account Margin Option

Margin requirements for the Standard Forex and Share CFD accounts are set to $500 per lot by default (2% on shares). With this margin setting, clients pay the daily carry as per the amounts shown in the "Currency Reference Rates"/"Instruments" window of the trading platform, regardless of position direction. However, clients can choose to have their margin requirements set at $2,000 per lot in which case they will pay or receive based on position direction. In this case, negative amounts shown in the "Currency Reference Rates" window are the amounts that the client will pay, and positive amounts are the amounts that the client will receive.


Mini Forex and Mini Share Account Margin Option


Margin requirements for the Mini Forex and Mini Share accounts are set to $50 per lot by default (2% on shares). With this margin setting, clients pay the daily carry as per the amounts shown in the "Currency Reference Rates"/"Instruments" window of the trading platform, regardless of position direction. However, clients can choose to have their margin requirements set at $200 per lot in which case they will pay or receive based on position direction. In this case, negative amounts shown in the "Currency Reference Rates" window are the amounts that the client will pay, and positive amounts are the amounts that the client will receive.


Leverage – Financial Leverage for Trading at the Financial and Commodity Markets

You can at the financial and commodity markets with the minimum investment control multiple value of your commodity contract. It means, you can for small control huge value with the possibility of the realization of high profits or losses. You can work with the financial leverage. You can use leverages at the commodity markets to your advantage. It is very easy, but totally strategic for the understanding how to make at the commodity markets huge amount of money. How does it work in practice we will show you on our seminars!

In the various trading systems you can work with Leverage 1:2, 1:5, 1:10, 1:25, 1:100, it means to buy your share or commodity contracts you need the margin 50%, 20%, 10%, 4%, 1% from the value of the standardized amount of the commodity in the contract (lot).

It seems you to be easy? It is easy!



   

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