Margin & Leverage
What is margin?
Margin trading gives you full exposure to a market using only a fraction of the capital you’d normally need. Margin is the amount of money you need to open a position, defined by the margin rate.
What is leverage?
Leverage is a facility that enables you to gain a large exposure to a financial market while only tying up a relatively small amount of your capital. It is a key feature of Foreign Exchange and CFD’s trading.
When you invest in a leveraged product, the provider will ask you to put up a sum representing just a fraction of the total value of your position. Effectively, the provider is lending you the balance.
Your profit or loss is based on the full position, however. So the amount you gain or lose might seem very high in relation to the sum you’ve invested. It could even be much greater than your initial outlay.
Mocaz Financial Markets Ltd reserves the right to modify Security Margin requirements in line with the size of the Client's deposit, size of transactions, market conditions characterized by particular volatility or lack of liquidity, or other factors determined by Mocaz Financial Markets Ltd.
Mocaz Financial Markets Ltd reserves the right to offer different spread rates in accordance with the size of the Client's Security Margin and/or positions.
Mocaz Financial Markets reserves the right to change the Client‘s trading account leverage at its discretion, either for a limited time period or on a permanent basis, according to the current Liquidity requirement, liquidity usage or risk synchronizing at Broker level depending on clients margin usage and available balance. Changes shall be announced by publication on the company website and/or written notice sent by mail prior to the action. As per guidelines, kindly refer to table below:
|$1-$100,000||Up to 1:300|
|$100,001 – $300,000||1:1 to 1:200|
|$300,001- $500,000||1:1 to 1:100|
|$500,000 above||1:1 to 1:50|
Foreign Exchange MarginCalculation :
FOREX [ Lots X Contract Size / Leverage X Percentage / Margin Requirement Percentage ]
For an example :
|Initial Deposit||USD 5000|
|Lot Size||1 Standard Lot|
1 X 100,000 / 300 X 100 / 100 = 333.33
Free margin after opening a trade : USD 5000 – USD 333.33 = USD 4666.67
Mocaz Financial Markets Contract Specification Sheet provides further information regarding the Forex on offer their trading hours and spreads.
Contract for Difference (CFD’s) Margin Calculation :
CFD – Leverage [ Lot X Contract Size X Markets Price / Leverage X Margin Requirement Percentage ]
For an example 100GBP ( FTSE 100)
|Initial Deposit||USD 5000|
|Contract Size per 1 Standard Lot||1|
|Leverage||1 : 200|
1 X 1 X 6872.20 / 200 X 2 = 68.72
Free margin after opening a trade : USD 5000 – USD 68.72 = USD 4931.28
Mocaz Financial Markets Contract Specification Sheet provides further information regarding the Indices on offer their trading hours and spreads.