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
