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InterBank Margin Calcs, Any others like them ?

  • #1
  • First Post: Mar 6, 2007 2:04pm Mar 6, 2007 2:04pm
MT4 brokers only

Interbank STD accounts are excellent for major margin calculations.

They calculate margin like this for each Micro lot in STD account like this

EURUSD is 0.01 * 1000 = $10.00

GBPUSD is 0.01 * 1000 = $10.00

USDCHF is 0.01 * 1000 = $10.00

AUDUSD is 0.01 * 1000 = $10.00

Margin is adjusted for hedging. If you have three trades of the EURUSD, say 2 buys and 1 Sell, the margin would be $20.00 ( Thats 0.01 traded) and not $30.00.

Other brokers Velocity4x, FXDD, UGM calculate margin like this for micro lot in STD
EURUSD is 0.01 * 1000 * 1.314 = $13.14

GBPUSD is 0.01 * 1000 * 1.926 = $19.26

USDCHF is 0.01 * 1000 * 1 = $10.00

AUDUSD is 0.01 * 1000 * 0.77 = $7.70

FXDD and UGM allow margin to be adjusted for hedging, Velocity4x does not ( ie $30 margin for three trades as described above).



QUESTION : Are the other MT4 brokers out there that calculate margin for the majors the same way Interbankfx does ?

Why I ask this is that Interbankfx is not the best in other areas.

Please advise...
  • #2
  • Mar 6, 2007 2:11pm Mar 6, 2007 2:11pm
Where did you get this information? Are you sure this information is correct for interbank?

Quoting Digs
MT4 brokers only

Interbank STD accounts are excellent for major margin calculations.

They calculate margin like this for each Micro lot in STD account like this

EURUSD is 0.01 * 1000 = $10.00

GBPUSD is 0.01 * 1000 = $10.00

USDCHF is 0.01 * 1000 = $10.00

AUDUSD is 0.01 * 1000 = $10.00

Margin is adjusted for hedging. If you have three trades of the EURUSD, say 2 buys and 1 Sell, the margin would be $20.00 ( Thats 0.01 traded) and not $30.00.

Other brokers Velocity4x, FXDD, UGM calculate margin like this for micro lot in STD
EURUSD is 0.01 * 1000 * 1.314 = $13.14

GBPUSD is 0.01 * 1000 * 1.926 = $19.26

USDCHF is 0.01 * 1000 * 1 = $10.00

AUDUSD is 0.01 * 1000 * 0.77 = $7.70

FXDD and UGM allow margin to be adjusted for hedging, Velocity4x does not ( ie $30 margin for three trades as described above).



QUESTION : Are the other MT4 brokers out there that calculate margin for the majors the same way Interbankfx does ?

Why I ask this is that Interbankfx is not the best in other areas.

Please advise...
  • #3
  • Mar 6, 2007 2:21pm Mar 6, 2007 2:21pm
I just spoke with InterbankFX...they have confirmed this.

On a standard account at 100:1 leverage, each standard lot is $1000 for the margin requirement regardless of the currency pair.

On a mini account at 200:1 leverage, each mini lot is $50 for the margin requirement regardless of the currency pair.

That means for pairs based in the AUD, NZD and the CHF, you'll be paying a higher than normal margin requirement, but for pairs based in the EUR and GBP, you'll be paying less than the normal margin requirement.

If you think about it, with a mini account, you're almost getting 400:1 leverage on the GBP based pairs.

To answer your question, D, I don't know of any other broker that does this.

Quoting mrmikal
Where did you get this information? Are you sure this information is correct for interbank?
  • #4
  • Mar 6, 2007 2:32pm Mar 6, 2007 2:32pm
Jes wayne, I did my research..dont you trust me !!

Of course my post was correct ! Da!
  • #5
  • Mar 6, 2007 2:36pm Mar 6, 2007 2:36pm
LOL...it wasn't about trust, my friend, I just thought maybe I was hallucinating...had to ask them myself to make sure it wasn't a language issue...sometimes, my English is very poor.

Quoting Digs
Jes wayne, I did my research..dont you trust me !!

Of course my post was correct ! Da!
  • #6
  • Last Post: Mar 8, 2007 7:35pm Mar 8, 2007 7:35pm
Quoting mrmikal
I just spoke with InterbankFX...they have confirmed this.

On a standard account at 100:1 leverage, each standard lot is $1000 for the margin requirement regardless of the currency pair.

On a mini account at 200:1 leverage, each mini lot is $50 for the margin requirement regardless of the currency pair.

That means for pairs based in the AUD, NZD and the CHF, you'll be paying a higher than normal margin requirement, but for pairs based in the EUR and GBP, you'll be paying less than the normal margin requirement.

If you think about it, with a mini account, you're almost getting 400:1 leverage on the GBP based pairs.

To answer your question, D, I don't know of any other broker that does this.
To answer your question, FXCM is another broker that does the same.

If you have a 200:1 leverage account, for any currency pairs, the margin required is simply $50 per $10K lot. Leverage of 50:1 (wherein you earn swaps), the margin is now $200 per $10K lot.
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