The broker TeleTrade announced that from December 18, it will introduce a mechanism of floating margin requirements for all Forex currency pairs within ECN accounts of the Metatrader 5.0 platform.

This mechanism implies that for all orders (new and already opened), depending on the open trading volume, different margin levels will be applied.

If the open volume in USD increases, the margin will increase, and if it decreases, the margin will decrease proportionally.

Dependency of margin requirements on open volume:

• Position size in USD - 0-200,000, max leverage - 1:1000, collateral - 0.1%.

• Position size in USD - 200,000-1,000,000, max leverage - 1:500, collateral - 0.2%.

• Position size in USD - 1,000,000-2,000,000, max leverage - 1:200, collateral - 0.5%.

• Position size in USD - 2,000,000-4,000,000, max leverage - 1:100, collateral - 1%.

• Position size in USD - 4,000,000-10,000,000, max leverage - 1:50, collateral - 2%.

• Position size in USD - more than 10,000,000, max leverage - 1:25, collateral - 4%.

For example:

• For a trading account with a leverage of 1:1000 for an open position up to 200,000 USD, the deposit will be 0.1% of the position value.

• If the volume increases to 1,000,000 USD, the margin for the range 200,000-1,000,000 USD will be 0.2% of the position value.

• A further increase in volume from 1,000,000 to 2,000,000 USD will require a margin of 0.5% of the current position value.

• Increasing the volume from 2,000,000 to 4,000,000 USD will increase the margin to 1%.

TeleTrade points out that the margin is calculated separately for each volume range and then summed up.

The floating leverage mechanism will be activated only for FX symbols and only for ECN-MT5 accounts (CENT and Invest accounts are not affected by these changes).

TeleTrade began operations in 1994 and offers its clients access to a wide range of trading instruments. The broker caters to traders of all levels and has won many prestigious awards and accolades. A large analytical section and a lot of educational material are perfect for beginners, while a wide range of technical analysis tools and the possibility of using different strategies attract experienced traders.