Ghana FX Margin Call Policy

Ghana FX has instituted a Margin Call Policy to protect Customers from losing more money than they have available in their accounts, and to protect the Company. Margin calls are executed when a Customer’s account has less equity available than required to maintain his or her open positions. The Company’s margin calls are activated in real-time on an automatic basis, and occur when a Customer’s Equity (Liquidation Value) reaches a level that is equivalent to 30% of Used (Open) Margin. This 30% is known as the Maintenance Level. Via the Company’s MT4 trading platform, positions are closed prior to the market having a chance to move further against the client’s trades.

For example, let’s assume a Customer with USD1000 opens an account and opens (5) 10,000 Unit Lots (50,000 units) of Usd/Chf using 100:1 (1%) Leverage. As a result, 1% of 50,000 or USD500 will be set aside as Used Margin, and the Customer will have USD500 remaining as Usable Margin. If the direction of the Usd/Chf moves opposite the Customer’s position, and their Equity (Liquidation Value) reaches USD150 from the original USD1000 deposit, this would breach the 30% maintenance level. As a result, the position will be automatically closed in order to protect the client from losing any more of their remaining balance, and possibly falling into negative territory.

We take initiative

The Company may, at the discretion of its dealers, close any or all open positions in a Customer’s account in the event that a Customer’s account falls below the minimum required equity. Generally, when there are 2 or more open positions the Company reserves a right to close the position(s) first with the highest floating loss on a highly volatile market when the Equity reaches 30% of Used or Open Margin. The largest positions are closed prior to the smaller positions, however the Company may at its discretion first close only the positions that carry the most risk. Even though our MT4 trading platform keeps track of used and free margin, it’s the Customer’s responsibility to keep track of these account balances at all times.

Safeguards provision

In addition, two other safeguards are in place to protect both the Customer and the Company alike. The first of these safeguards are once the Equity reaches 100% of Used Margin, the Customer will only be able to enter orders to hedge his/her current position(s.) The second of these safeguards is that once the Equity reaches 50% of Used Margin, the Customer will not be able to enter any new positions, only the ability to exit current position(s.)
For more help understanding how margin is calculated please feel free to contact us using our contact page.