Margin requirements
CitiFX Pro provides you with the ability to leverage your margin deposit for a greater
market effect.
Each tradable currency pair has an allocated margin requirement, as shown
here. Any position you take through CitiFX Pro is subject
to the following margin requirements:
- The face value of the position multiplied by the margin factor for the specific
currency pair, converted to the base currency of your account.
- Customers of CitiFX Pro need to ensure that they have sufficient available margin
to cover the margin requirements of their trades. Your available margin will be
reduced if you hold a losing position (whether the loss is realized or not).
- It is your responsibility to ensure that you have sufficient margin to your credit.
If not, you will be subject to a margin call and will either need to deposit more
funds to cover your positions or close or reduce positions. Normally you will be
notified through our trading platform and via e-mail.
- If your margin situation is not remedied, we may close positions on your behalf.
Please consider the time required to transfer funds from your bank account to your
margin account – in many cases the best course of action may be to reduce your position
to ensure that you meet your margin requirements.
Margin used for orders
When you enter an order into the CitiFX Pro system, it will check your margin availability
(using the information current at the time of order entry). If the execution of
the trade would result in you having insufficient margin to support your positions,
the order will be rejected at the point of entry.
When an order level is reached, the CitiFX Pro system automatically checks your margin
availability again (using the information current at the time of the order level
being reached) to ensure that you have sufficient available margin to execute the
trade. If the execution of the trade would result in you having insufficient margin
to support your positions, the order will not be filled and will be cancelled in
the system.
Please note that closing an existing trade will reduce your margin utilization, thereby
increasing your margin availability. Opening a new position will increase your margin
utilization, thereby decreasing your margin availability.
Your margin funds will not be covered by FDIC insurance.