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Margin & Leverage
We use multiple liquidity providers from Tier 1 Banks and institutions to give you competitive quotes on a wide range of instruments.
Margin and Leverage
About Margin
Trading on margin allows you to open a position by only depositing a percentage of the full value of the position. Margin is used to cover any credit risks that arise during your trading.
Margin Requirements (and the associated Margin Percentage) vary with each Product. A list of the requirements is set out on the Trading Platform. These may change regularly.
Margin Percentage
At BCR, the margin requirement (per lot) is either represented as a floating amount or a percentage.
For example, using 200:1 leverage, if the price of EURUSD is 1.18992, and a client opens 1 lot of EURUSD (1 lot = 100,000 Units of the base currency), then the margin requirement is $594.96 (1.18992 * 100,000 / 200).
The margin requirement for US stocks is a fixed percentage (10%). If the price of Apple Inc. stock (#AAPL) is $174.54 per share, and a client trades 0.5 lot (1 lot = 100 contracts = 100 shares), then the margin requirement is $872.70 (0.5 * 100 * 174.54 * 10%).
As you can see in the above example, the margin requirement to open a position can be dynamic if it is represented as a percentage.
Leverage
Leverage is another expression of margin percentage.
Leverage = 1 / Margin Percentage.
For example, the margin requirement for #AAPL is 10%. It means that Leverage for #AAPL is 10:1.
Please review our Contract Specifications for our latest Leverage Settings.
Account Equity
| Account Equity | Account Max Leverage |
|---|---|
| 50,000 or above | 1:200 |
| 100,000 or above | 1:100 |
| 200,000 or above | 1:50 |
| 300,000 or above | 1:25 |
| 500,000 or above | 1:20 |
| 1,000,000 or above | 1:10 |
The leverage will be automatically adjusted according to the above conditions. The leverage will be restored to the default level if there are no open position. BCR will not be responsible if the account’s positions are automatically closed via Margin Call closed due to the above adjustment.
Margin use is subject to the following terms:
| Used Margin | Account Max Leverage |
|---|---|
| 50,000 - 200,000 | 1:100 |
| 200,001 or above | 1:50 |
The leverage will be automatically adjusted according to the above conditions. The leverage will be restored to the default level if there are no open position. BCR will not be responsible if the account’s positions are automatically closed via Margin Call closed due to the above adjustment.
Hedging
Hedging is taking on both Long and Short positions of the same size in the same product simultaneously in order to reduce the risk in an adverse market. This involves opening a position in the opposite direction of the same size as the initial opened position. The margin requirement for holding hedged positions is 0.
Liquidation / Stop-out Level
Hedging is taking on both Long and Short positions of the same size in the same product simultaneously in order to reduce the risk in an adverse market. This involves opening a position in the opposite direction of the same size as the initial opened position. The margin requirement for holding hedged positions is 0.
Similarly, the margin in your trading account needs to be more than 50% for open positions in order to be able to open new trades, unless the new trades will result in current positions being partially or fully hedged.
BCR provides different margin and leverage for different instruments. To view BCR Margin Requirement, click on the Instruments below. It is strongly advised that clients always maintain the appropriate amount of margin in their accounts.
