Margin & Liquidation

Margin and liquidation

What is Margin and Liquidation

Since Rakuten Securities Bullion is providing leveraged Bullion Trading, investors may enjoy a large scale of investment with less amount of money.
Below is the required margin level (0.5%) for opening position in Rakuten Securities Bullion.

When free margin % falls below Margin Stop Out Level(100%), all of your positions will be closed automatically from largest losing position to the smallest.

HKD ACCOUNT
USD ACCOUNT
Initial Margin Level
0.5%
0.5%
Margin Stop Out Level
100%
100%

How to calculation free margin %

#

Free margin % = (Equity / Initial Margin) * 100%

GOLD
Example:
Gold Example
Symbol
Lots
Equity (USD)
Open Price
Initial Margin (USD)
Free margin % calculation
Free margin %
1
XAU/USD
1
$5,000
$1,800
$900
=$5,000 / $900
556%
2
XAU/USD
1
$3,000
$1,800
$900
=$3,000 / $900
333%
3
XAU/USD
1
$1,000
$1,800
$900
=$1,000 / $900
111%
SILVER
Example:
Silver Example
Symbol
Lots
Equity (USD)
Open Price
Initial Margin (USD)
Free margin % calculation
Free margin %
1
XAU/USD
1
$5,000
$25
$625
=$5,000 / $625
800%
2
XAU/USD
1
$3,000
$25
$625
=$3,000 / $625
480%
3
XAU/USD
1
$1,000
$25
$625
=$1,000 / $625
160%

# free margin % of MT4 platfrom

How to calculate margin stop out level

Stop out level= Open price – (Free margin / Lots/ contract size)

GOLD
Example:
Example
Symbol
Lots
Equity (USD)
Buy/Sell
Open Price
Initial Margin (USD)
Free margin
Price change
Stop out level calculation
Stop out level
1
XAU/USD
0.5
$10,000
Buy
$1,800
$450
$9,550
=$1,800-($9,550/0.5/100)
$1,609.00
2
XAU/USD
1
$10,000
Buy
$1,800
$900
$9,100
=$1,800-($9,100/1/100)
$1,709.00
3
XAU/USD
3
$10,000
Sell
$1,800
$2,700
$7,300
=$1,800-($7,300/-3/100)
$1,824.33
4
XAU/USD
5
$10,000
Sell
$1,800
$4,500
$5,500
=$1,800-($5,500/-5/100)
$1,811.00

Lots: +ve for buy order, -ve for sell order
Contract size for Gold is 100oz per lot

SILVER
Example:
Example
Symbol
Lots
Equity (USD)
Buy/Sell
Open Price
Initial Margin (USD)
Free margin
Price change
Stop out level calculation
Stop out level
1
XAU/USD
0.5
$10,000
Buy
$25
$313
$9,688
=$25-($9687.5/0.5/5000)
$21.128
2
XAU/USD
1
$10,000
Buy
$25
$625
$9,375
=$25-($9375/1/5000)
$23.125
3
XAU/USD
3
$10,000
Sell
$25
$1,875
$8,125
=$25-($8125/-3/5000)
$25.542
4
XAU/USD
5
$10,000
Sell
$25
$3,125
$6,875
=$25-($6875/-5/5000)
$25.275

Lots: +ve for buy order, -ve for sell order
Contract size for Silver is 5,000oz per lot