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Dynamic Margin

Discover how dynamic margin significantly impacts the management of your positions.

What is Dynamic Margin?

Dynamic margin provides a systemic approach to calculating margin requirements, ensuring that the margin rates align with your position size and hedging strategy. It allows for greater flexibility and precision in managing your trading portfolio while maintaining risk management standards.

Key Features of Dynamic Margin

Position Size significance

Position size, or market exposure, is crucial in determining margin requirements. The larger your market position, the more margin you need.

Adaptable margin rules

Dynamic Margin rules apply to all open positions. This means you can have open positions across different markets and still benefit from the lowest margin rates listed below.

Pending Orders

Pending orders that are activated will have their margin requirements modified based on current rates. When the order is executed, the margin reflects these dynamic rates.

Hedged Positions

Hedged positions come with a unique feature— they require only 50% of the margin requirement compared to equivalent unhedged positions.

Hedged Positions 

When dealing with partially or fully hedged positions, you should keep in mind: The hedge side of a trade can be closed (fully or partially) only if the remaining free equity in the account post-closure is sufficient to cover the revised margin requirements. Alternatively, you may need to top up your account to maintain sufficient equity or close both sides of the hedged trade with realised losses.

Examples of Dynamic Margin



A trader holds a long position of 1 lot in a major cross with a $1,000 margin requirement.



A trader holds a short position of 20 lots and a long position of 10 lots in the same market, resulting in a hedged position.



A trader holds a long position of 20 lots, then partially hedges by selling 10 lots. Later, the Trader removes the hedge by buying back 10 lots.

Dynamic Margin Rates by Asset



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