English
简体中文
繁體中文
Монгол Хэл
Bahasa Melayu
Tiếng Việt
ไทย
日本語
Margin & Leverage
We use multiple liquidity providers from Tier 1 Banks and institutions to give you competitive quotes on a wide range of instruments.
We use multiple liquidity providers from Tier 1 Banks and institutions to give you competitive quotes on a wide range of instruments.
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.
At Heracles, 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 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 Max Leverage |
|---|---|
| 100,000 or above | 1:200 |
| 200,000 or above | 1:100 |
| 300,000 or above | 1:50 |
| 500,000 or above | 1:25 |
| 1,000,000 or above | 1:20 |
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. Heracles 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. Heracles will not be responsible if the account’s positions are automatically closed via Margin Call closed due to the above adjustment.
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.
The trading platform will automatically begin to liquidate open orders when the client's Total Equity balance falls below 50% of the Initial Margin Requirement. The trading platform will liquidate individual positions until the remaining Client Total Equity is sufficient to support existing open position(s). In deciding what positions will be individually liquidated the largest losing position will be closed first during liquidation.
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.
Heracles provides different margin and leverage for different instruments. To view Heracles Margin Requirement, click on the Instruments below. It is strongly advised that clients always maintain the appropriate amount of margin in their accounts.
Risk Disclosure: Derivatives are traded over-the-counter on margin, which means they carry a high level of risk and there is a possibility you could lose all of your investment. These products are not suitable for all investors. Please ensure you fully understand the risks and carefully consider your financial situation and trading experience before trading. Seek independent financial advice if necessary before opening an account with Heracles.