From 28 October 2022, there will be a policy on margin requirement adjustment due to the market’s uncertain volatility and will require attention for clients that are with SMART BALANCE QUANTIZATION LTD. The new policy will apply to a range of our financial instruments on hedged positions including, FX, commodities, indices, cryptocurrencies and all upcoming new financial instruments to be launched in the future. The policy aims to ensure clients’ trading risk is mitigated as well as the company’s.

How will this impact you?

Hedged position’s margin requirements will be adjusted to 50%.

For example, if you have an open long position of $200 of margin, and you open a short position of the same instrument with the same lot size, instead of taking up $400 ($200 + $200), the two hedged positions will only require $200 margin ($400 x 50%).

The new margin requirement will allow clients to retain more equity if their hedged positions are liquidated due to unexpected market volatility and economic events.

What happens next?

From 28 October 2022, if you have open hedged positions, the margin requirement of those positions will be adjusted to 50% and the hedged positions will require 50% of the margin as well.

If you have existing positions on hand, this means that you will require more margin in the account to hold the positions.

We suggest you check your open positions and margin rate to ensure your portfolio is safe and will not be affected due to the change.

Have questions?

We are here to help so if you have any questions or would like more information, please reach out to our support team at [email protected] or contact your account manager.