Margin, Collateral and Margin Close-Out

On 17 March 2021 at 9am AEDT, we are introducing new minimum initial and maintenance margin calculations for all CFD and FX products.

To better protect you against adverse market conditions, and in order to comply with ASIC’s Product Intervention Power Order, we are introducing a new initial and maintenance margin framework for CFDs and FX to create a buffer between your trading capacity and the margin close-out level. 
This means your margin requirements will now consist of two elements:

1. The Initial margin: the amount of margin required to open a new position
2. The Maintenance margin: the amount of margin required to maintain an open position.

Please note that these changes will affect your account. To find out more information on how the new margin framework will apply, please click here.

If you hold, or open, any CFD and/or FX positions before 17 March 2021, please ensure your account has sufficient funds to meet your maintenance margin.   

Margin rates for Wholesale Clients

On a related note, Wholesale clients are able to trade with higher leverage than Retail clients and may also have access to other benefits. If you wish to know more about how to qualify as a Wholesale client, please click here.

Check the changes

From 15 February 2021, you can preview the upcoming changes in respect of the margin requirements in the platform under Account – Other – Upcoming Margin and Collateral Changes. If your portfolio includes instruments scheduled for changes, you can also check the impact of these changes in the Margin Monitor. See the demonstration of platform changes here.

Change in margin methodology for all clients: effective 9am AEDT 17 March

If you are holding both a long and short position in the same instrument that will not net at end-of-day, the margin will now be calculated on the largest leg. At the same time interest margin for FX forward trades will no longer be charged. Additionally, intraday margin on CFDs will no longer be available. 

New Margin close-out level for Retail Clients: effective 9am AEDT 17 March

If your maintenance margin utilisation reaches or exceeds 100%, your margin positions will automatically be closed out , and any open orders on margin products will be automatically cancelled.

Negative balance protection for Retail Clients

From 17 March 2021, negative balance protection will be applied to accounts that open a FX or CFD position on or after 9:00 AM AEDT, 17 March 2021. For any loss after any/all collateral on the open FX or CFD position, including cash deposits and unrealised profit/loss on Futures and Options, are protected against negative balance. 

Margin ceiling for Retail Clients

From 9:00 AM AEDT, 17 March 2021, the margin ceiling is a restriction (or limit) on opening new exposure that would bring the total portfolio initial margin requirement above AUD 800,000 to prevent from opening new exposure but will be able to maintain the existing position (s) as long as margin utilization remains below 100%. 

Watch video for more details