How Progressive CFD Margin Tiers Increase XAUUSD Requirements
Summary
The document explains a progressive margin schedule for XAUUSD CFDs. Exposure is calculated from lot count, contract size, price, and exchange rate; each portion of exposure is then charged at the rate for its tier. Lower tiers use lower rates, while larger exposures incur higher rates on the portion that crosses into each tier. The examples compare a position within the first tier with one spanning three tiers to show how the calculation accumulates.
It also describes a special-period rule that applies a uniform rate when a position change triggers recalculation of all open XAUUSD positions. The FAQ says existing margin is fixed against price movement until a recalculation event, while unrealized profit and loss still affects account equity and risk. Margin can also depend on net long versus short exposure, so closing a smaller side may not release margin. The figures and rules are specific to the described platform and instrument; traders should check the live trading interface for applicable rates and account-level effects.
Key ideas
- Notional exposure is based on lots, contract size, price, and exchange rate.
- Each exposure tier is charged at its own rate, and the tier amounts are added together.
- A position change during a special period can trigger recalculation of all open positions at the special rate.
- Price changes affect unrealized profit and loss, but the document says they do not by themselves recalculate existing margin.
- When both long and short positions are held, margin is charged on the side with the larger net exposure.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.