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/USE 1 $5,000 $1,800 $900 =$5,000 / $900 556%
2 XAU/USE 1 $3,000 $1,800 $900 =$3,000 / $900 333%
3 XAU/USE 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/USE 1 $5,000 $25 $625 =$5,000 / $625 800%
2 XAU/USE 1 $3,000 $25 $625 =$3,000 / $625 480%
3 XAU/USE 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/USE 0.5 $10,000 Buy $1,800 $450 $9,550 =$1,800-($9,550/0.5/100) $1,609.00
1 XAU/USE 1 $10,000 Buy $1,800 $900 $9,100 =$1,800-($9,100/1/100) $1,709.00
1 XAU/USE 3 $10,000 Sell $1,800 $2,700 $7,300 =$1,800-($7,300/-3/100) $1,824.33
1 XAU/USE 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/USE 0.5 $10,000 Buy $25 $313 $9,688 =$25-($9687.5/0.5/5000) $21.128
1 XAU/USE 1 $10,000 Buy $25 $625 $9,375 =$25-($9375/1/5000) $23.125
1 XAU/USE 3 $10,000 Sell $25 $1,875 $8,125 =$25-($8125/-3/5000) $25.542
1 XAU/USE 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