Dynamic Margin in ACY Trading Platform adapts to your trading volume, offering higher leverage for smaller trade sizes and adjusting the required margin as trade volumes increase. This feature allows traders to utilise leverage more effectively while providing flexibility depending on the size of their positions.
The margin required for each trade is not static. Instead, it is determined by specific Margin Tiers based on the notional value of your trade. These tiers define the margin percentage required and the leverage you can use for each trade size bracket. Below is an in-depth explanation using the margin levels for the EURUSD symbol as an example.
Dynamic Margin Calculation Example for EURUSD
The table below breaks down the required margin based on the notional value of the trade in EURUSD. The account base currency is Euros. Each tier shows the margin rate and leverage for a specific trade size, along with how much margin is needed to execute the trade.
| Tier | Trade Size (EUR) | Margin Rate | Leverage | How Much Margin You Need |
|---|---|---|---|---|
| 1 | 0 - 5,000 | 0.02% | 1:5000 | 0.02% of your trade size |
| 2 | 5,000 - 10,000 | 0.04% | 1:2500 | €1 + 0.04% of the amount above $5,000 |
| 3 | 10,000 - 20,000 | 0.10% | 1:1000 | €3 + 0.10% of the amount above $10,000 |
| 4 | 20,000 - 50,000 | 0.16% | 1:625 | €13 + 0.16% of the amount above $20,000 |
| 5 | 50,000 - 300,000 | 0.20% | 1:500 | €61 + 0.20% of the amount above $50,000 |
| 6 | 300,000 - 500,000 | 0.40% | 1:250 | €561 + 0.40% of the amount above $300,000 |
| 7 | 500,000 - 1,000,000 | 0.50% | 1:200 | €1,361 + 0.50% of the amount above $500,000 |
| 8 | 1,000,000 - 1,500,000 | 0.80% | 1:125 | €3,861 + 0.80% of the amount above $1,000,000 |
| 9 | 1,500,000 - 2,000,000 | 1.00% | 1:100 | €7,861 + 1.00% of the amount above $1,500,000 |
Example Calculation
If you wish to open a EURUSD position worth €25,000, your margin requirement would fall into Tier 4 (Trade Size: €20,000 - €50,000). Here's how your margin would be calculated:
- The first €20,000 falls under Tier 3, requiring €13 in margin.
- For the next €5,000 (the amount above €20,000), the margin rate for Tier 4 is 0.16%.
Therefore, you will need:
0.16% of €5,000 = €8
Total margin needed: €13 (for the first €20,000) + €8 (for the remaining €5,000) = €21.
How Does Leverage Work?
As shown in the table, the leverage varies depending on the trade size. Leverage determines how much capital you can control with your margin deposit. Smaller trade sizes allow for higher leverage (e.g., 1:5000 for trades up to €5,000), meaning you can trade a larger position with a smaller initial margin. As trade sizes increase, leverage decreases, requiring more margin to open and maintain the position.
Why Use Dynamic Margin?
Dynamic Margin helps traders manage risk while optimising capital allocation based on trade size. The system adapts automatically as your trade size increases, ensuring you have the flexibility to trade smaller volumes with higher leverage while adjusting to tighter risk controls as positions grow larger.
You can view margin requirements for specific symbols directly in ACY Trading Platform by checking the Specification section within the platform’s Watchlist.