How is CFD Tiered Margin Calculated?

1. What is tiered margin?

In a nutshell, the larger the position, the higher the margin rate.

Previously, no matter how large a position you opened, a single fixed margin rate applied across the board. With the updated system, positions are divided into tiers based on their value. Each tier has its own margin rate, with lower tiers requiring less margin and higher tiers requiring more margin. If your position spans multiple tiers, each tier is calculated separately, and the results are added together.

Similar logic: Tax brackets

This works exactly like a personal income tax bracket system. Not your entire income will be subject to a high tax rate. The amount up to a threshold, such as $100,000, is taxed at a lower rate, and only the portion above that threshold is taxed at a higher rate. Tiered margin follows the same logic.

2. XAUUSD position tiers

XAUUSD tiered margin rates during regular trading hours (notional exposure calculated in USDT):

Notional exposure = number of lots × contract size (100 ounces) × current price × exchange rate

3. Calculation details

3.1 Calculate the notional exposure

Kinakatawan ng notional exposure ang kabuuang market value ng iyong posisyon at ipinapakita ang halaga ng mga market asset na aktwal mong kinokontrol.

Notional exposure (USDT) = bilang ng mga lot × laki ng kontrata × current price × exchange rate

For XAUUSD, the exchange rate is fixed at 1 because the quote currency is USD.

3.2 Determine the highest tier you fall into

Compare the notional exposure you calculated against the tier table above to determine which tier it falls into. This is your highest tier.

All tiers below the highest tier are calculated at their full tier cap. Only the highest tier is calculated based on the actual amount exceeding the previous tier's upper limit.

3.3 Calculate margin tier by tier and add the results

Margin per tier = actual exposure in that tier × tier margin rate

Used margin = tier 1 margin + tier 2 margin + … + highest tier margin

4. Calculation examples

• Scenario 1: Open a position of 10 lots (tier 1 only)

Step 1: Calculate the notional exposure

Notional exposure = 10 lots × 100 ounces × 4000 USD = 4,000,000 USDT

Step 2: Determine the tier

4,000,000 < 10,000,000, so the highest tier is tier 1, with a margin rate of 0.20%.

Step 3: Calculate the margin

Calculate XAUUSD margin tier by tier | 10 lots

Tier 1 margin = total exposure of 4,000,000 × 0.20% = 8000 USDT

Total used margin: 8000 USDT

• Scenario 2: Open a position of 60 lots (multiple tiers)

Step 1: Calculate the notional exposure

Notional exposure = 60 lot × 100 onsa × 4000 USD = 24,000,000 USDT

Step 2: Determine the tier

20,000,000 ≤ 24,000,000 < 40,000,000, kaya ang pinakamataas na antas ay antas 3.

Therefore, tier 1 and tier 2 margins are calculated at their full tier caps. Tier 3 margin is calculated only on the amount exceeding the tier 2 upper limit (24,000,000 − 20,000,000 = 4,000,000).

Step 3: Calculate margin for each tier

Calculate XAUUSD margin tier by tier | 60 lots

Tier 1 margin = 10,000,000 × 0.20% = 20,000 USDT

Tier 2 margin = 10,000,000 × 1.00% = 100,000 USDT

Tier 3 margin = 4,000,000 × 10.00% = 400,000 USDT

Total used margin: 520,000 USDT

Opening a position of 60 lots of XAUUSD means you have a notional exposure of 24,000,000 USDT | spanning 3 tiers

Comparison: Under the old flat margin rate of 0.20%, 60 lots would require 24,000,000 × 0.20% = 48,000 USDT. However, under the tiered system, 520,000 USDT is required, approximately 10.8× more. The larger the position, the more pronounced the difference. Make sure to monitor your available margin before opening positions.

• Senaryo 3: Ang mga posisyon ay pumapasok sa isang espesyal na panahon, at ang lahat ng posisyon ay muling kinakalkula pagkatapos magbukas ng bagong posisyon

Mga Kinakailangan

XAUUSD price: $4000 per ounce | Contract size: 100 ounces per lot

Tier 1 margin rate during regular trading hours: 0.20%

Uniform margin rate during special periods: 1.00% (for gold, no tiers)

Timeline

Regular hours | Existing positions

Hold 10 lots of XAUUSD. Notional exposure: 4,000,000 USDT, falling into tier 1.

Ginamit na margin = 4,000,000 × 0.20% = 8000 USDT

Enter a special period (30 minutes before market close)

The margin rate becomes 1.00%. However, since no position change occurs at this moment, margin is not recalculated, and your account remains in its current state.

Open a position of five lots during the special period

A position change occurs → margins for all open positions in the account are recalculated at the uniform special period margin rate of 1.00%.

New total positions = 10 + 5 = 15 lots. Notional exposure = 6,000,000 USDT (still in tier 1).

Muling kinalkulang ginamit na margin

Espesyal na panahon | Muling kalkulahin ang margin para sa lahat ng bukas na posisyon sa XAUUSD | 15 lot | Margin rate na 1.00%

Notional exposure = 15 × 100 × 4000 = 6,000,000 USDT

Pare-parehong margin rate na 1.00% sa mga espesyal na panahon

Kabuuang ginamit na margin = 60,000 USDT

Buod ng bago at pagkatapos

Key takeaway: From ① to ③, only five lots were added, yet the required margin jumps from 8000 USDT to 60,000 USDT, which is an increase of 52,000 USDT. This is because all open positions, including the original 10 lots, are recalculated at the special period uniform rate of 1.00%. If you have insufficient margin in the account, the new order will be rejected, and a margin warning may be triggered for the whole account.

5. FAQ

(1) If the price moves while I'm holding a position, will my margin requirement change?

No. The margin required for existing positions does not change with price fluctuations. The required margin is locked in at the time of opening and remains fixed for the life of the position, and price movements do not trigger a recalculation.

However, price movements will affect your unrealized PnL. When the market moves in your favor, your account equity rises, and your risk ratio improves. When it moves against you, your account equity falls, and your risk ratio deteriorates. So even though the margin itself has not changed, a significant adverse price move can push your risk ratio toward the warning threshold. Make sure to top up your available margin in a timely manner.

(2) Palagi bang babawasan ng pagsasara ng posisyon ang aking kinakailangang margin?

Hindi palagi. Depende ito sa iyong pangkalahatang istraktura ng posisyon pagkatapos ng pagsasara. Ang CFD trading ay nagbibigay-daan sa iyo na humawak ng parehong long position at short position sa parehong instrumento nang sabay. Kinakalkula ng platform ang margin tulad ng sumusunod:

Margin is charged only on the side with the larger net exposure. The side with the smaller net exposure does not incur additional margin.

Example: You hold 10 lots long and 6 lots short in XAUUSD. Margin is calculated on the long side (10 lots). The short side (6 lots) incurs no additional margin. At this point, if you:

• Close part of the long side (e.g., close 3 long lots): The long position drops to 7 lots, still larger than the 6-lot short position. Margin continues to be calculated based on the long position, so the margin requirement decreases.

• Magsasara ng bahagi ng short na panig (hal., isara ang 2 short na lot): Ang short position ay bababa sa 4 na lot, na nagpapalawak sa agwat, ngunit ang nangingibabaw na panig (10 lot na long) ay hindi nagbabago, kaya ang kinakailangang margin ay nananatiling pareho.

Sa madaling salita, kung ang pagsasara ng posisyon ay nagpapalaya ng margin ay depende kung binabawasan mo ang nangingibabaw na panig o ang mas maliit na panig.

(3) Saan ko maaaring tingnan ang risk ratio ng aking konto at ang mga naaangkop na margin rate?

Risk ratio ng konto: Mag-log in at pumunta sa pahina ng trading upang tingnan ang iyong real-time na risk ratio at kasalukuyang paggamit ng margin.

Kasalukuyang margin rate: Sa pahina ng trading, ilagay ang bilang ng mga lot na balak mong buksan, pagkatapos ay piliin ang icon ng impormasyon sa tabi ng field na Ginamit na Margin upang makita ang breakdown ng margin rate sa bawat antas para sa position size na iyon.

Note: Estimated margin shown on the trading page is an estimate for the new position only and does not account for existing open positions. For the actual impact on your overall account margin, refer to the data in the trading interface.

Summary: The core principle of tiered margin is progressive tier-by-tier accumulation. Lower-tier exposure is charged at a lower rate, while higher-tier exposure is charged at a higher rate, rather than applying the highest rate to your entire exposure. The larger your position, the more exposure falls into higher tiers, and the faster your total margin requirement grows. We recommend confirming the estimated margin required on the trading page before opening a position to ensure your account has sufficient funds.