Exchange Traded CFD Margins

Margin requirements will be a function of market volatility but will be set at about 5 to 10% of the value of the underlying physical.

Variation margins will be applicable to open contracts that experience adverse price movements. If you have an open long position and the price falls below a certain level on an intraday or overnight basis then you will be required to pay a variation margin to cover the adverse movement of the price. Short positions that experience positive variation when the market falls will receive a variation margin equal to the positive marked-to-market movement in the value of the position.

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Variation margins will be payable on margin calls and positions can become subject to liquidation if variation and initial margins are insufficient to cover the shortfall. The variation margins will be calculated on the basis of the physical daily settlement price (dsp).

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