Margin Policy

Unlike most of its competitors, FX Solutions' GTS platform calculates margin in real-time based on the currency pair traded. Margin required is affected by changes in the market rate. For non-Dollar based currency pairs the margin required will be converted into U.S. Dollars at the prevailing market price for that pair. For example, the margin required to place a trade of GBP 100,000 is not the same as the margin needed for a trade of US$100,000.

Once the equity in the client’s account falls below the used margin, (the margin required to maintain all existing positions), ALL POSITIONS ARE LIQUIDATED at the prevailing market rates.

In the case where a stop or limit (or entry stop or limit) is entered at the same price that would trigger a margin call, the margin call will be executed when that price is touched (or gaps through the price) and all pending orders attached to that trade will be cancelled.

A MARGIN CALL, WHEN TRIGGERED, WILL TAKE PRECEDENCE OVER OTHER ORDER TYPES.

FX Solutions has implemented this policy in order to better protect clients during times of extreme market volatility.

Example:

A client places a trade to sell GBP/USD 100,000 at 2.0350, with GBP/USD trading at
2.0350 / 2.0355. Leverage selected on the account is 100:1.

The margin required is GBP100,000 /100 = GBP 1,000 Since this currency pair is
not Dollar-based the margin must be converted into Dollars to correctly reflect the risk.

GBP 1,000 X 2.03525 (mid-rate of pair traded 2.0350/2.0355) = $2,035.25

The margin required to place this trade would be GBP1,000 or $2,035.25.

Please be aware that this margin is marked-to-market in real time for the life of the trade, which is standard market protocol. Therefore, if the GBP/USD mid-price increased theoretically to 2.0700, the margin required to maintain the trade would be GBP 1,000 x 2.0700 or $2,070. If the price fell to 1.9500 then the required margin would decrease accordingly.