Leverage & Margin

Trading | Account Types | Withdrawals | Leverage & Margin

Leverage and Margin Requirements

The margin requirements can be found on this page. When trading, you must keep a particular amount of money in your account (the necessary margin), which is also known as a good faith deposit. Calculating and understanding your required margin requirements ahead of time allows you to implement proper risk management and avoid any unwanted margin calls that result in the closing of a position due to a lack of margin in your account. Margin requirements for demo accounts are the same as those on regular accounts.

New trading opportunities

Operations on MetaTrader 4/5 accounts with a high trading volume due to expanded leverage without the need for further deposits in the trading account.

More available funds

Leverage will be reduced, lowering the margin requirements for open positions.

Competitive Margins

Lower margin requirements necessitate fewer funds to keep open positions.

Product Contract Size Initial Margin
(Per Lot)
Force Close
(Level)
Spread Swap (% Per Year)
Per Lot 2% of Contract Value 10% of Initial Margin (Cent) Of Contract Value
Example at Price $1100
XAUUSD 100 OZ $3,000 $1,500 0.5-0.7 -2% -2%
XAUUSD 100 OZ $3,000 $1,500 0.4-0.5 -2% -2%
XAUUSD 100 OZ $3,000 $1,500 0.2-0.4 -1.25% -2%

Initial Margin

The minimum amount required to open any position.

Maintenance Margin

Account equity must be sustained at or above 75% of the account's starting margin.

Margin Call

If the equity in the account falls below 75% of the initial margin, the client is liable and required to keep the equity at the initial margin level. The client may also regularly add margin or liquidate any part or all of the opened position to revert the equity to the full amount of the initial margin. If unable to return the equity to the initial margin amount, the Company may liquidate any or all of the opened positions.

Closing out position by automatic stop-loss

When the client's equity falls to or below 10% of the starting margin, the trading system may immediately shut out all of the outstanding positions.

If the opening price following the weekend or market holidays causes the client's equity to fall to or below 10%, or negative, those positions will be liquidated at the opening price; if there is any negative balance in the account, the client is liable for it.

Every Friday or Hong Kong Public Holidays Eve (the previous trade day of a Hong Kong public holiday), if a client account's equity falls to or below 100% of its starting margin at its close, all open trades will be liquidated at the closing price, with no prior notice.

Note 1: Any closed out position conducted by iOTA MARKETS FZCO will be acknowledged and confirmed to the online trading customer by e-mail.

Note 2: Any closed out position conducted by iOTA MARKETS FZCO through phone or fax will be acknowledged and confirmed to the phone trading customer.

Note 3: Under permissive conditions, a margin call will be launched for all outstanding position(s). Nevertheless, due to a number of conditions (including extreme swings in market price), which may fail to ensure timely communication with the client prior to the automatic liquidation. As a result, clients must keep a close eye on the market and maintain an adequate cash balance in their accounts.

Margin Call Communication Methods

A margin call will be issued to the client via phone, email, or SMS (if applicable) to offer specifics on the additional margin necessary as well as any other requirements for the outstanding account (s).

Note 1: iOTA MARKETS FZCO reserves the right, at its sole discretion, to alter or amend the conditions of precious metals margin trading requirements and fees at any time.