Margin Requirement

At ADSS, we offer leveraged currency trading in line with the Securities and Futures Commission (SFC) regulations. The maximum leverage level is 20:1, but every trader can choose the degree of leverage they wish to employ up to this amount.

The leverage level set by ADSS at default margin level is 5% per lot. However, margin requirements for leverage vary depending on account size, volume traded and market conditions. These can be changed from time to time at the discretion of ADSS. 

Margin Levels

The minimum margin requirement is calculated based on 5% of gross principal value within 50 to 100 points of the current market value. Maintenance margin requirement value is recalculated to reflect current market conditions at approximately 8am every day, under normal market conditions. 

Initial Margin Level: The initial margin level requirement is 5% of an open position’s value. Available account equity must exceed the initial margin level requirement. 

Maintenance Margin Level: If the equity of your account falls below the maintenance margin level requirements, then it drops to 3% of an open position’s value. ADSS will notify traders when this happens.

Liquidation Margin Level: All open positions will be closed when the equity of an account falls below the liquidation margin requirement. The liquidation margin level is 1% of all open positions. 

Auto-Closeout: When the ratio of required margin to account balance exceeds 500% (below the 1% total value of open positions) one, several or all positions in the account will be liquidated immediately in descending order of exposure, whether the value of these positions are positive or negative. Once the account equity reaches the required margin level (5% of total value of open positions) all pending orders can be placed.