Following the recent changes made to the margin calculations on other instruments please note we are now extending this to our bullion products.
From market open on Sunday 16th April the margin requirement will be calculated using the contract price rather than a set contract value as is currently the case. The calculation will be as follows:
Example 1: Buy 1 lot XAUUSD
Contract Size: 100
XAUUSD rate: 1204.05
Margin requirement (1 lot): 0.5%
1 * 1204.05*100*0.5% = $602.02
Margin requirement USD 602.02
Example 2: Order: Buy 1 lot XAGUSD
Contract Size: 5000
XAGUSD rate: 17.028
Margin requirement (1 lot): 1%
1 * 17.028*5000*1% = $851.40
Margin requirement USD 851.40
In order to facilitate the move to the new rate, we need to close and reopen all XAUUSD and XAGUSD positions that remain open at this time; you will see this on your account statement but there will be no profit or loss realised as all positions will be closed and reopened at their original open price. The only financial consideration will be additional commission charges (if applicable) which will be fully reimbursed to your account.
Please note that the margin requirement for these bullion products may now change and you therefore need to ensure that you have sufficient funds in your account to maintain your open positions. You will also need to reattach stop loss and limit orders to the new positions.