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MARGIN REQUIREMENTS

What is a margin?

A margin is a deposit used as collateral for taking positions in the market. Trading with margin allows you to open positions using leverage thereby increasing your investment power, with only a small percentage of the equity.

What are margin requirements?

Every instrument you trade carries a margin requirement. If the value of the account falls below the minimum margin requirement then additional funds must be added as collateral for each trade, or the open positions will be liquidated.

How is margin calculated?

The margin required for each open position is calculated using the following formula:

 Required Margin = (Market quote x Lots) / Leverage

Example:
 
To open a position of 0.10 (10000 base currency) lots of EUR/USD, with a leverage of 1:100, at the current market quote of 1.3750

 Required Margin: (1.3750 x 10000) / (1/100) = 137.5 USD

To hold this position open you would be required to keep a minimum of 137.5 USD in your account.
 

What is a margin call?

A margin call is an alert from the platform, warning you that your account does not have the required equity. At Domino Forex, you will be alerted when your margin reaches 100% that it has slipped below the required margin percentage, and additional funds are needed to secure your open trades.

The Domino Forex margin call level is 100%
 

What is a stop out level?

A stop out level is the point at which the platform will automatically close your open trades, beginning with the least profitable position, when the margin requirements have not been met.  This process continues, until the margin level requirement has been reached. The stop out level serves to lessen the risk of your account incurring losses that result in a negative balance.

The Domino Forex stop out level is 20% 


 

 

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Risk Warning: Forex and CFDs are leveraged products. Forex and CFD Trading is highly speculative and carries a high level of risk that may not be suitable for all type of investors. You may go to Risk Warning Page for detailed information. Trading on margin and leveraged products increase your exposure to risk. You may potentially lose some or all of your investment.

Disclaimer: Any information contained above is provided for general information purposes only and does not constitute and shall not be deemed to constitute advice or an offer or solicitation. Such information and any opinion expressed therein reflects and represents the views of Domino Europe Ltd at the time of writing and, accordingly, may be subject to change without notice and cannot be relied on to any extent by any person seeking to execute any transaction or as a basis for any investment decision. Such information has been prepared without regard to the specific investment objectives, financial situation and requirements of any particular person. Whilst we believe that the information contained herein was accurate at the time of writing, we do not guarantee such accuracy or, for that matter, completeness in addition, we do not assume any liability for any direct, indirect or consequential loss that may result from the use by any person of any such information contained herein. Translations of the Website/Agreement and /or any other documents pertaining to the Services are made available by Domino Fore Ltd for the customer’s convenience. In the event of any conflict and/ or discrepancy whatsoever between the original English text and any translation thereof, and for any international purposes, the English version shall prevail.

Domino Forex is the trade name of Domino Europe Ltd. A limited Liability Company registered in Malta C59946 and licenced under the MFSA Category 3 Investment Services Licence Number IS/59946
Apartment 12, Regent House, Bisazza Street Sliema SLM 1640 MALTA
Phone: +356 274 00 577-8     Fax: +356 274 00 579     E-mail: forex@dominoforex.com

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