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Margin Calls
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CMS Forex has implemented a Margin Call Policy to protect our clients from losing more money than they have available in their accounts. Margin calls are executed when a client’s account has less equity available than required to maintain his or her open positions. Our margin calls are activated in real-time and on an automatic basis, closing positions before the market has a chance to move further against your trades. This ensures that you will never lose more money then you have invested in your account.
For every position a client has opened, a collateral deposit known as margin is required to be put aside in the client’s account. For example, an account with $1,000 that opens a standard lot position will have to put $250 aside* as the margin and will have $750 in remaining usable margin. If the direction of the market moves opposite to the client’s position, and their usable margin reaches $0 from $750, then 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. After the margin call in this example the client will have approximately $250, the original margin requirement, left in his or her account.
CMS Forex may, at the discretion of its dealers, close any or all open positions in a trader’s account in the event that an account falls below the minimum required equity. However, when possible, CMS Forex will try to first close only the positions that carry the most risk. It is the customer’s responsibility to monitor and maintain his or her margin account balances at all times. Traders may keep track of their equity and usable margin in the “Account(s) Information” window in VT Trader™. Please see the CMS Forex Client Trading Agreement for further details on this margin call policy.
For every position a client has opened, a collateral deposit known as margin is required to be put aside in the client’s account. For example, an account with $1,000 that opens a standard lot position will have to put $250 aside* as the margin and will have $750 in remaining usable margin. If the direction of the market moves opposite to the client’s position, and their usable margin reaches $0 from $750, then 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. After the margin call in this example the client will have approximately $250, the original margin requirement, left in his or her account.
CMS Forex may, at the discretion of its dealers, close any or all open positions in a trader’s account in the event that an account falls below the minimum required equity. However, when possible, CMS Forex will try to first close only the positions that carry the most risk. It is the customer’s responsibility to monitor and maintain his or her margin account balances at all times. Traders may keep track of their equity and usable margin in the “Account(s) Information” window in VT Trader™. Please see the CMS Forex Client Trading Agreement for further details on this margin call policy.
*This margin requirement for a standard 100K lot implies that a trader is using the full 400:1 leverage option. See Leverage and Margin for more details.
Trading Terms
Minimum Initial Deposit |
Universal Accounts |
Multi-Currency Accounts
| No Commission†
Spreads |
Order Processing |
Order Types
| Rollover Interest Policy |
Interest on Unused Margin‡
Leverage & Margin Policy |
Margin Call Policy |
Hedging
†CMS is compensated through the Bid/Ask spread.
‡For qualifying accounts only.