Margin

To ensure you can cover any losses you might incur on your Positions, we require you to transfer Margin to us. Although there is no minimum deposit required to open a MahiFX Account or a MT4 Account, the funds available in your Trading Account and size of your Net Asset Value will limit the size of the Positions you can open and will affect when you receive a Margin alert and possible Margin Closeout. A “Margin Closeout” is when the MahiFX Platform automatically closes all of your open Positions, or the MT4 Platform closes out your least profitable position(s), to significantly decrease the probability of losing more than the combined amount of your Margin and the amount that is in your Trading Account.

The term Leverage is often used to describe the Margin requirements. It refers to the deposit required in order for you to open the Position. MahiFX permits Leverage of 100 to 1 for all major currencies, 50 to 1 for minors and 25 to 1 for metals.

Margin Requirements

The table below outlines MahiFX’s Margin requirements as at the date of this PDS and FSG.

Majors 100:1 (1% Margin)Minors 50:1 (2% Margin)Metals 25:1 (4% Margin)
AUD, CAD, CHF, DKK, EUR, HKD, GBP, JPY, NOK, NZD, SEK, SGD and USD
(Note: any combination or pair of the above currencies is possible with this level of Margin)
AUD/HUF, AUD/MXN, AUD/PLN, AUD/ZAR, CAD/MXN, CAD/PLN, CAD/TRY, CHF/HUF, CHF/PLN, CHF/TRY, CHF/ZAR, EUR/HUF, EUR/PLN, EUR/RON, EUR/TRY, EUR/ZAR, GBP/HUF, GBP/MXN, GBP/PLN, GBP/TRY, GBP/ZAR, HUF/JPY, MXN/JPY, NZD/HUF, NZD/MXN, NZD/PLN, NZD/TRY, NZD/ZAR, TRY/JPY, USD/HUF, USD/MXN, USD/PLN, USD/RON, USD/TRY, USD/ZAR, ZAR/JPYXAG/USD, XAG/AUD, XAG/EUR, XAG/HKD, XAG/JPY, XAU/USD, XAU/AUD, XAU/EUR, XAU/HKD, XAU/JPY

Any update to available Currency Pairs, or the required Margin, will be available on our website at www.mahifx.com.

Margin Calculation on the MahiFX Platform

The MahiFX Platform considers both the Base Currency and Terms Currency of a Trade when calculating your Margin requirements. For example: if you traded USDJPY, we would require Margin of 0.5% of the USD amount and 0.5% of the JPY amount so the total Margin is 1% reflecting the fact that USDJPY is a major Currency Pair. Whereas, if you were to trade USDTRY, we would require Margin of 0.5% of the USD amount and 1.5% of the TRY amount so the total Margin would be 2% reflecting the fact that USDTRY is a minor Currency Pair.

Cross Margining on the MahiFX Platform

It is your obligation to monitor your positions at all times and deposit additional funds into your Trading Account to maintain the Margin required for your Positions. The MahiFX Platform utilises Cross Margining to maximise the efficiency of your Margin utilisation. Cross Margining means we aggregate your bought (long) Positions and sold (short) Positions for each currency and only assess Margin on the net exposure. For example, let's say you buy 100,000 EURUSD at 1.3033. The Margin is converted to your Native Currency, AUD in this case, to arrive at your total Margin in your Native Currency. Your Margin information is available and can be viewed on the MahiFX Platform. If you then sold 100,000 EURCHF, your EUR balance nets to zero (you have both bought and sold 100,000 EUR) and the EUR Margin has reduced to zero. However, there is now a Margin required for the CHF balance.

Margin Calls

We ask that you always have sufficient Net Asset Value available to cover any losses you might incur. We mark all your Positions to market in real-time to monitor the impact of market price fluctuations. If market prices move to the detriment of your Positions, you will be required to “top up” your Margin with us (referred to as calling variation Margin). Both the MahiFX Platform and the MT4 Platform automatically monitors your Margin requirements in real-time and will transfer variation Margin from your Trading Account to MahiFX if required. Effectively, your Net Asset Value must exceed the Margin requirements noted below. You will only be allowed to Trade or maintain open Positions where you have satisfied our Margin requirements by either having sufficient Net Asset Value or providing further cleared funds. If you do not maintain sufficient Net Asset Value in your Trading Account to meet your required Margin, your Positions may be closed out.

Margin Closeouts

In order to prevent losses greater than the funds you have deposited (as represented by the combined amount of your Margin and the funds in your Trading Account), if you no longer have sufficient Margin we can close you out. Closeout will occur when: (a) your Net Asset Value is less than or equal to 50% of the required Margin to support your open Positions; or (b) after 5 Business Days of being in breach of your Margin requirements (i.e., your New Asset Value being less than 100% of the total Margin required) (Margin Closeout Event). Please note that in a fast moving market, there may be little time between Margin alerts or there may not be sufficient time to warn you at all. It is your responsibility to monitor your Positions at all times and deposit additional cleared funds to maintain your Margin requirements: you should proactively manage the status of your Trading Account. 

Margin Closeouts on the MahiFX Platform

On the MahiFX Platform, if you have a Margin Closeout Event, then we will close all your open Positions automatically using the market rate applicable at the time of closing.

Margin Calculation on the MT4 Platform

The MT4 Platform calculates Margin only by reference to the Base Currency (i.e., the first mentioned currency on the left hand side of a Currency Pair) of a Trade. For example: if you traded USDJPY, we would require Margin of 1% of the USD amount (the Base Currency of the Currency Pair) reflecting the fact that USDJPY is a major Currency Pair. Whereas, if you were to trade USDTRY, we would require Margin of 2% of the USD amount (the Base Currency of the Currency Pair) reflecting the fact that USDTRY is a minor Currency Pair. MahiFX reserves the right to vary, from time-to-time and in its sole discretion, the Margin requirements offered to customers and which Currency Pairs are classified as major or minor.

Margining on the MT4 Platform (no Cross Margining on the MT4 Platform)

Again, it is your obligation to monitor your positions at all times and deposit additional funds into your Trading Account to maintain the Margin required for your Positions. The MT4 Platform calculates margin on your net exposure under each Currency Pair. However, it does not net all currency exposures (in the way that the MahiFX Platform does) and only nets each Currency Pair exposure. For example, let's say you buy 100,000 EURUSD at 1.3033. The Margin is converted to your Native Currency, AUD in this case, to arrive at your total Margin in your Native Currency. Your Margin information is available and can be viewed on the MT4 Platform. If you then sold 100,000 EURCHF, your EUR balance is not netted to zero (even though you have effectively both bought and sold 100,000 EUR). Margin is required for both the EURUSD Trade and EURCHF Trade.

Margin Calls on the MahiFX Platform

In an attempt to ensure you have sufficient warning to manage your Trading Account and Margin requirements, we will alert you by email and via ‘notifications’ in the MahiFX Platform, at the following stages:  100% of the required Margin. 75% of the required Margin. 60% of the required Margin. 52.5% of the required Margin. Alerts are also sent at 5 p.m. New York time (EST) if your Net Asset Value is less than the required Margin.

Margin Calls on the MT4 Platform

In an attempt to ensure you have sufficient warning to manage your Trading Account and Margin requirements, we will alert you by email and via ‘notifications’ in the MT4 Platform when your account reaches 75% of less of the required Margin. We will continue to send you email alerts and notifications every 24-hours until you deposit additional cleared funds to meet your required Margin or your Position(s) is (are) closed out.

Margin Closeouts on the MT4 Platform

On the MT4 Platform, if you have a Margin Closeout Event, then we will close out your least profitable position(s) automatically using the market rate applicable at the time of closing, until you have sufficient Net Asset Value to support the Margin required on your open Positions (which could mean all your open Positions are closed). Closeout of Positions When you close out a Position, the MahiFX Platform and the MT4 Platform automatically recognises that you no longer need to post Margin to support that Position. Your Margin (net of any unsettled gains or losses on the Position) will be credited to your Trading Account in your Native Currency immediately and physically settled as soon as practicable (normally during MahiFX’s normal banking process run, which occurs following the conclusion of each Business Day in Australia, i.e., overnight AEST).