Margin requirements, Leverage

With a deposit, margin, you control the entire contract and thus entire potentional profit. The lower the deposit, margin, you use for the trading, the cheaper is your entrance into the trading but financial leverage effect is increasing. Professional speculators use high financial leverage. Low margin, high leverage increase financial efficiency of trading. The deposit, margin, is returned after closing the trading position. Margin is thus kept as operationally refundable capital through which we can control much larger values of traded assets.

Find out, how can you get up to 20% in addition to your margin.

Margin requirements and principles

ICTS Forex Account: 25 EUR/USD per contract on all Forex instruments. Equivalent to approximately 0.25% margin or 400:1 leverage.

CFD/Share Account: 5% on individual shares, 25 EUR/USD per contract of indices and other instruments. Click here for exact margin requirements on each product.

GCI is able to maintain these low margin requirements by enabling automatic liquidation of positions once a margin call is reached. This policy also provides for the protection of client account balances in the event of rapid price movements.

A margin call is reached if a client"s account equity falls below the required margin. For example, in an ICTS Forex account, if a client has 10 lots of open positions a margin call will occur if account equity drops below 250 dollars. At this point, some or all of the client"s open positions will be closed immediately at current prices.

Traders are also able to monitor both usable margin and used margin in real-time from the "Account Information" window of the online trading platform. Positions will be automatically closed once usable margin drops below zero. GCI encourages clients to avoid margin calls by either using stop loss orders or maintaining adequate funds in the account relative to position size.

Leverage - financial leverage for trading on financial and commodity markets

On financial and commodity markets you can with small investment control several time larger value of your commodity contract. That means that you can control large value for little with possibility to realize high profits or losses. You can work with Leverage. You can use Leverages on financial markets to your advantage. It is very simple, but very strategic for understanding, how to make money on commodities exchanges.

Within different trading systems, you can work with 1:2, 1:5, 1:10, 1:25, 1:100...1:400, Leverage, i.e. to buy your share or commodity contracts you need a deposit (margin) of 50%, 20%, 10%, 4%, 1%... 0.25% from the value of standardized amount of commodities in contract (lot).