PDS IBR Sections
PDS IBR Sections
This page page contains all the information that is “Incorporated by Reference” in the AxiTrader Product Disclosure Statement, which is available by clicking the link below.
Download the Product Disclosure Statement in PDF by clicking here
Please expand each section you wish to view by clicking on the section titles below.
- IBR 1 – How to open an account
Before you begin dealing in our Margin FX Contract and CFD products, you must complete an Application Form and be approved by us to open an account. There are 3 Application Forms:
- one for applicants that are individuals (including joint applicants);,
- one for corporations; and
- one for trusts.
Before completing the appropriate Application Form you should read the PDS including this document and the Client Agreement, and the FSG located on the Website. The Application Forms are available on our Website or can be obtained by contacting us.
You must provide us with your Application Form, or at any time requested by us, such of the documentation as set out in the Application Form.
The Application Forms require you to disclose personal information. You should refer to the privacy statement. Please contact us if you have any concerns or if you would like to see a copy of our privacy statement, which explains how we collect personal information and then maintain, use and disclose that information.
- IBR 2 – Contracts for Difference and Margin Forex contracts
- Is AxiTrader Regulated?
Contracts for Difference and Margin FX Contracts
- 2.1 What is foreign exchange?
Foreign exchange is about exchanging one currency for another. In a foreign exchange transaction one currency can be bought or sold in exchange for another currency. The exchange rate is the price of one currency (the base currency) in terms of the other currency (the term currency) and is the price at which this transaction takes place. For example: if the current exchange rate for the Australian dollar (base currency) against the US dollar (term currency) is AUD/USD 1.04, this means that an Australian dollar is equal to, or can be exchanged for, USD1.04.
- 2.2 What is a Contract for Difference?
A contract for difference (CFD) is a financial product that gives the holder an exposure to an underlying asset without giving any proprietary rights in that asset.CFDs have the same legal characteristics as Margin FX Contracts.
- 2.3 Types of CFDs Issued by Us
We offer CFDs based on the following Underlying Instruments:
- gold and silver (Bullion CFDs);
- commodities (Commodity CFDs);and
- equity index futures contracts (Index Futures CFDs).
CFDs will be traded in the currency listed in the AxiCorp Products Schedule Currency for that CFD.
- 2.4 Opening a CFD
A CFD Position is opened by either buying (going long) or selling (going short) on a CFD.You go “long” when you buy a CFD in the expectation that the price of the Underlying Instrument to which the CFD is referable will increase, which has the effect that the CFD price will increase.
You go “short” when you sell a CFD in the expectation that the price of the Underlying Instrument to which the CFD is referable will decline, which has the effect that the CFD price will decline.
We provide you with a number of different order types to facilitate the opening and closing of long and short Positions.
- 2.5 Closing a CFD
You close a CFD by entering into and executing an equal and opposite transaction in the same CFD.If you close a Position, you must cancel any related orders you have placed against that Position. Failure to do so will mean that the related orders remain at risk of execution.
- 2.6 Nature of Margin FX Contracts and CFDs
Margin FX Contracts and CFDs are not traded on a licensed financial market, or exchange, but are bilateral agreements between you and AxiCorp, with each party responsible for assessing the credit standing and capacity of the other party before entering into the transaction.If you have a need to purchase the underlying currency, i.e. to enter into a position that is to be settled by exchange of currency, our Margin FX Contracts are not appropriate for you, because they do not involve an exchange of currency at a future point in time.
However, if you wish to trade in deliverable foreign exchange, either spot or forward, we offer products by way of another Product Disclosure Statement and you should discuss your requirements with one of our representatives.
- Margin Foreign Exchange trading
- 2.7 Different to spot and forward trading
Margin foreign exchange trading with us differs from spot and forward trading in that:
- it does not involve an exchange of currencies or the sale at a future point in time; and
- there is ordinarily no pre-determined settlement date.
Rather, margin foreign exchange trading with us involves taking spot or forward Positions in a foreign currency and, instead of these contracts being settled by exchange of currencies, the Positions are “closed-out”. Closing-out involves entering into an equal and opposite Position with us and generates a profit or a loss which is then settled between us. The resulting profit or loss of the trade is the net result of the difference between the opening and closing exchange rates or prices of each transaction, adjusted for transaction costs.
- 2.8 Long and Short Positions
You go “long” when you buy a Margin FX Contract or CFD or place an order to open a Position in the expectation that the price of the Underlying Instrument will increase, which would have the effect that the Position’s price will increase.You go “short” when you sell a Margin FX Contract or CFD or place an order to open a Position in the expectation that the price of the Underlying Instrument will decline, which would have the effect that the Position price will decline. If this occurs, because you have sold a Margin FX Contract or CFD (rather than bought a Margin FX Contract or CFD), you would make a profit if you closed the Position at this point, subject to our fees and charges.
- 2.9 Example of Margin FX trading
You are watching the currency market and, whilst you do not have any physical requirement to buy or sell AUD against the USD, you are of the opinion that the AUD will strengthen against the USD over the next few days.So, you can either trade online on our Trading Platform or call our desk and ask our staff for a price for you to buy AUD and sell USD with the intention to close out the trade at some time in the future. You are quoted a AUD/USD rate of 0.7000 and accept that rate. Note that it is your intention that this Position will be closed-out before expiry.
On the next day the AUD has strengthened against the USD and you call our desk and ask our staff for a price for you to sell AUD and buy USD.
You are quoted an AUD/USD rate of 1.04.
Day 1: Buy AUD 100,000 @ 1.04 against USD
USD value = 104,000Day 2: Sell AUD 100,000 @ 1.05 against USD
USD value = 105,000Net trading profit: = USD 1,000 gross profit (excluding costs).
* Please note these rates are used for illustrative purposes only and are not meant to be taken as an actual conversion rate that is available in the market at this time.
* See also IBR 3.
- 2.1 What is foreign exchange?
- Is AxiTrader Regulated?
- IBR 3 – Trading Examples
This section provides you with some trading examples of Margin FX Contracts and the CFDs that we are offering under the PDS in relation to the execution of those trades for Australian Clients only. Margin Percentages may be changed without those examples being updated and all other amounts are approximation for illustration purposes only. To ascertain the currently applicable Rollover Charges and Benefits you should refer to our Website or call our Client Services Department.The use of examples in the PDS is provided for illustrative purposes only and does not necessarily reflect current or future market prices or the prices that we will apply to trade; nor how such trades have an impact on your personal circumstances.
- 3.1 – Examples of Going Long in Margin FX
- Example of Going Long and making a profit on Margin FX Contracts
You opened an account with AxiCorp and your account has an opening balance of AUD20,000 and you believe that the price of the Australian Dollar (AUD) is going to appreciate against the US Dollar (USD) which is currently at 0.9280. You decide to buy AUD 100,000 against USD at the current price. DAY ONEOpening a Position Calculation Account Display The price of AUDUSD spot is 0.92780 (bid price)/0.92800 (offer price) N/A Opening Balance AUD 20,000 You buy AUD100,000 at the exchange rate of 0.92800 You pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Your Margin Requirement for this trade is 1% of the amount tradedTherefore, your Margin Requirement to open this Position is AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Initial Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your Margin Requirement AUD 20,000 – 1,000 = AUD 19,000 Free Equity AUD 19,000 You decide to hold the Position overnight. The closing price of AUDUSD for the day was 0.92800, the same as your purchase price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of the two currency pairs involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display A sell trade at 0.92800 and simultaneously a buy trade at 0.927905 will be generated to reflect the Rollover Charge.As the AUD is the higher yielding currency and you are long AUD, so your account is credited with USD 9.50 Daily Rollover Charge(0.92800 – 0.927905) x 100000 = USD 9.50 This amount will be booked in your base currency, which is AUD at 0.92800 = AUD 10.24
Total Equity will be
AUD 20,000.00 + 10.24 = AUD 20,010.24
Total Equity AUD 20,010.24 Your open Position will remain at the historical purchase price of 0.9280This way you can keep track of your original purchase price at all times Let say, at 11:30 a.m., the AUD has moved up to 0.93300 after the RBA has indicated that further interest rate hike is necessary to curb inflation.Your Position is marked to market which will change your account balance. Unrealised Profit(0.93300 – 0.92800) x 100000 = USD 500 This amount will be booked in your AUD base currency at the rate of 0.93300 = AUD 535.91
New Equity Balance
AUD 20,010.24 + 535.91 = AUD 20,546.15
Total Equity AUD 20,546.15 Your Margin Requirement remains at AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your Margin Requirement AUD 20,546.15 – 1,000 = AUD 19,546.15 Free Equity AUD 19,546.15 At 4 p.m. you decided to close your Position as AUD has appreciated to 0.9350Closing the Position Calculation Account Display You sell AUDUSD100,000 at bid price of 0.93500 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for Margin FX trading N/A N/A N/A Realised Profit (0.93500 – 0.92800) x 100000 = USD 700.00 (AUD 748.66)New Balance AUD 20,010.24 + 748.66 = AUD 20,758.90
Total Equity AUD 20,758.90 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement AUD 20,758.90 – 0.0 = AUD 20,758.90 Free Equity AUD 20,758.90 In this example you were correct in predicting the AUD will appreciate against the USD. After daily rollover charge for one day you would have made AUD 758.90 profit. However, if your prediction was wrong and the price had moved in the opposite direction by an equal amount, your loss would have been AUD 749.80. Please see the example below for how this loss is calculated. - Example of Going Long and making a loss on Margin FX Contracts
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of the Australian Dollar (AUD) is going to appreciate against the US Dollar (USD) which is currently at 0.92800. You decide to buy AUD 100,000 against USD at the current price. DAY ONEOpening a Position Calculation Account Display The price of AUDUSD spot is 0.92780 (bid price)/0.92800 (offer price) N/A Opening Balance AUD 20,000 You buy AUD 100,000 at the exchange rate of 0.92800 You pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Contracts. Your Margin Requirement for this trade is 1% of the amount traded.Therefore, your Margin Requirement to open this Position is AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Initial Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your Margin Requirement 20,000 – 1,000 = 19,000 Free Equity AUD 19,000 You decide to hold the Position overnight. The closing price of AUDUSD for the day was 0.92800, the same as your sell price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of the two currency pairs involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display A sell trade at 0.92800 and simultaneously a buy trade at 0.927905 will be generated to reflect the Rollover Charge.As the AUD is the higher yielding currency and you are Long AUD, so your account is credited with USD 9.50 Daily Rollover Charge(0.92800 – 0.927905) x 100000 = USD 9.50 This amount will be booked in your base currency, which is AUD at 0.92800 = AUD 10.24
Total Equity will be
AUD 20,000 – 10.247 = AUD 20,010.24
Total Equity AUD 20,010.24 Your open Position will remain at the historical purchase price of 0.9278This way you can always keep track of your original sell price Let say, at 11:30 a.m., the AUD has dropped to 0.9230 after the RBA has indicated that further interest rate hike is not necessary as inflation was under control.Your Position is marked to market which will change your account balance Unrealised loss(0.92300 – 0.92800) x 100000 = USD -500 This amount will be booked in your AUD base currency at the rate of 0.92300 = AUD -541.71
New Equity Balance
20,010.24 – 541.71 = 19,468.53
Total Equity AUD 19,468.53 Your initial Margin Requirement remains at AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your initial Margin Requirement AUD 19,468.53 – 1,000 = AUD 18,468.53 Free Equity AUD 18,468.53 At 4 p.m. you decided to close your Position as your prediction was wrong AUD has depreciated against the USD to 0.92100/12Closing the Position Calculation Account Display You sell AUDUSD100,000 at bid price of 0.92100 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for Margin FX Contract trading N/A N/A N/A Realised Loss (0.92100 – 0.92800) x 100000 = USD -700.00 (AUD -760.04)New Balance AUD 20,010.24 – $760.04 = AUD 19,250.20
Total Equity AUD 19,250.20 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement AUD 19,250.20 – 0.00 = AUD 19,250.20 Free Equity AUD 19,250.50 In this example, you were wrong in predicting the AUD will appreciate against the USD. After commission and daily Rollover Charge for one day you would have made AUD 749.80 (-AUD 760.04 + 10.24) loss.
- Example of Going Long and making a profit on Margin FX Contracts
- 3.2 – Examples of Going Short in Margin FX
- Example of Going Short and making a profit on Margin FX Contracts
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of the Australian Dollar (AUD) is going to depreciate against the US Dollar (USD) which is currently at 0.92780. You decide to sell AUD 100,000 against USD at the current price. DAY ONEOpening a Position Calculation Account Display The price of AUDUSD spot is 0.92780 (bid price)/0.92800 (offer price) N/A Opening Balance AUD 20,000 You sell AUD 100,000 at the exchange rate of 0.92780 You pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Contracts Your Margin Requirement for this trade is 1% of the amount tradedTherefore, your Margin Requirement to open this Position is AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Initial Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your Margin Requirement AUD 20,000 – $1,000 = AUD 19,000 Free Equity AUD 19,000 You decide to hold the Position overnight. The closing price of AUDUSD for the day was 0.9278, the same as your sell price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of the two currency pairs involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display A buy trade at 0.92780 and simultaneously a sell trade at 0.92765 will be generated to reflect the Rollover Charge.As the AUD is the higher yielding currency and you are short AUD, so your account is debited with USD 15.00 Daily Rollover Charge(0.92780 – 0.92765) x 100000 = USD 15.00 This amount will be booked in your base currency, which is AUD at 0.92780 = AUD 16.17
Total Equity will be
AUD 20,000.00 – 16.17 = AUD 19,983.83
Total Equity AUD 19,983.83 Your open Position will remain at the historical purchase price of 0.92780This way you can keep track of your original purchase price at all times Let say, at 11:30 a.m., the AUD has depreciated to 0.92300 after the RBA has indicated that further interest rate hike is not necessary as inflation was under control.Your Position is marked to market which will change your account balance Unrealised Profit(0.92300 – 0.92780) x 100000 = USD 480 This amount will be booked in your AUD base currency at the rate of 0.92300 = AUD 520.04
New Equity Balance
AUD 19,983.83 + 520.04 = AUD 20,503.87
Total Equity AUD 20,503.87 Your Margin Requirement remains at AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Initial Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your Margin Requirement AUD 20,503.87 – 1,000 = AUD 19,503.87 Free Equity AUD 19,503.87 At 4 p.m. you decided to close your Position as AUD has depreciated further to 0.9210/12Closing the Position Calculation Account Display You buy AUDUSD 100,000 at offer price of 0.92120 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Contracts N/A N/A N/A Realised Profit (0.92780 – 0.92120) x 100000 = USD 660.00 (AUD 716.46)New Balance AUD 19,983.83 + 716.46 = AUD 20,700.29
Total Equity AUD 20,700.29 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement AUD 20,700.29 – 0.00 = AUD 20,700.29 Free Equity AUD 20,700.29 In this example you were correct in predicting the AUD will depreciate against the USD. After commission and daily Rollover Charge for one day you would have made AUD 700.29 profit. However, if your prediction was wrong and the price had moved in the opposite direction by an equal amount, your loss would have been AUD 770.05. Please see the example below for how this loss is calculated. - Example of Going Short and making a loss on Margin FX Contracts
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of the Australian Dollar (AUD) is going to depreciate against the US Dollar (USD) which is currently at 0.92780. You decide to sell AUD 100,000 against USD at the current price. DAY ONEOpening a Position Calculation Account Display The price of AUDUSD spot is 0.92780 (bid price)/0.92800 (offer price) N/A Opening Balance AUD 20,000 You sell AUD100,000 at the exchange rate of 0.92780 You pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Contracts. Your Margin Requirement for this trade is 1% of the amount tradedTherefore, your Margin Requirement to open this Position is AUD 1,000 AUD 100,000 x 1% = AUD 1,000 Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your Margin Requirement AUD 20,000 – 1,000 = AUD 19,000 Free Equity AUD 19,000 You decide to hold the Position overnight. The closing price of AUDUSD for the day was 0.92780, the same as your sell price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of the two currency pairs involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display A buy trade at 0.92800 and a sell trade at 0.927905 will be generated simultaneously to reflect the Rollover Charge.As the AUD is the higher yielding currency and you are Long AUD, so your account is debited with USD 15.00 (0.92780 – 0.92765) x 100000 = USD 15.00This amount will be booked in your base currency, which is AUD at 0.92780 = AUD 16.17 Total Equity will be
$20,000 – 16.17 = $19,983.83
Total Equity AUD 19,983.83 Your open Position will remain at the historical purchase price of 0.92780This way you can always keep track of your original sell price Let say, at 11:30 a.m., the AUD has appreciated to 0.93300 after the RBA has indicated that further interest rate hike is necessary to control inflation.Your Position is marked to market which will change your account balance Unrealised loss(0.93300 – 0.92780) x 100000 = USD 520 This amount will be booked in your AUD base currency at the rate of 0.93300 = AUD 557.34
New Equity Balance
AUD 19,983.83 – 557.34 = AUD 19,426.49
Total Equity AUD 19,426.49 Your initial Margin Requirement remains at AUD 1,000 $100,000 x 1% = AUD 1,000 Initial Margin Requirement AUD 1,000 Your Free Equity is Total Equity less your initial Margin Requirement $19,426.49 – 1,000 = 18,426.49 Free Equity AUD 18,426.49 At 4 p.m. you decided to close your Position as your prediction was wrong AUD has appreciated against the USD to 0.93500/52Closing the Position Calculation Account Display You buy AUDUSD100,000 at offer price of 0.93520 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Contracts. N/A N/A N/A Realised Loss (0.93500 – 0.92780) x 100000 = USD 720.00 (AUD 770.05)New Balance 19,983.83 – 770.05 = 19,213.78
Total Equity AUD 19,213.78 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement $19,213.780 – 0.0 = $19,213.78/td> Free Equity AUD 19,213.78 In this example, you were wrong in predicting the AUD will appreciate against the USD. After commission and daily rollover charge for one day you would have made a AUD 770.05 loss.
- Example of Going Short and making a profit on Margin FX Contracts
- 3.3 – Example of going long and going into Margin Call on Margin Foreign Exchange
- Example of Going Long and going into Margin Call on Margin Foreign Exchange
You maintain an account with AxiCorp and your account has a an Opening balance of AUD 5,000 and you believe that the price of the Australian Dollar (AUD) is going to appreciate against the US Dollar (USD) which is currently at 0.92800. You decide to buy AUD 300,000 against USD at the current price. DAY ONEOpening a Position Calculation Account Display The price of AUDUSD spot is 0.92780 (bid price)/0.92800 (offer price) Contract AmountAUD 300,000 x 0.9280 = USD 278,400 Opening Balance AUD 5,000 You buy AUD 300,000 at the exchange rate of 0.92800 You pay $0 commission for this trade. AxiCorp charges no commission for trading margin foreign exchange Your Margin Requirement for this trade is 1% of the amount tradedTherefore, your Margin Requirement to open this Position is AUD 3,000 AUD 300,000 x 1% = AUD 3,000 Initial Margin Requirement AUD 3,000 Your free equity is total equity less your Margin Requirement 5,000 – 3,000 = 2,000 Free Equity AUD 2,000 You decide to hold the Position overnight. However, in the US market, the AUDUSD had fallen to close at 0.92100 due to a better than expected US employment figure.Because you have decided to hold your Position overnight you will incur a Daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of the two currency pairs involved. The Rollover Rate is variable according to currency pairs and calculated as set out at section 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display A sell trade at 0.92100 and a buy trade at 0.920905 will be generated simultaneously to reflect the Rollover Charge.As the AUD is the higher yielding currency and you are long AUD, so your account is credited with USD 9.50 Daily rollover charge(0.92100 – 0.920905) x 300000 = USD 9.50 This amount will be booked in your base currency, which is AUD at 0.92100 = AUD 10.30
Total Equity will be
5,000 + 10.30 = 5,010.30
Balance AUD 5,010.30 Your open Position will remain at the historical purchase price of 0.92800This way you can keep track of your original purchase price at all times Your account is marked to market at the closing price which will change your account balance Unrealised Loss:(0.92800 – 0.92100) x 300,000 = USD 2,100 This amount will be booked in your AUD base currency at the rate of 0.92100 = AUD 2,280.13
New Equity:
$5,010.30 – $2,280.13 = $2,730.17
Total Equity AUD 2,730.17 Your Margin Requirement remains at AUD 3,000 AUD 300,000 x 1% = AUD 3,000 Margin Requirement AUD 3,000 Your Free Equity is Total Equity less your Margin Requirement AUD 2,730.17 – $3,000 = AUD -269.83 Free Equity AUD -269.83 As your Free Equity has fallen into a debit balance, you would now be on a Margin Call N/A Margin Call AUD 269.83 In this example, the AUDUSD had moved against you and your Total Equity balance fell below your Margin Requirement, your account will be placed on Margin Call. When your account moves into deficit you have two options. You can either reduce your Position in order to reduce your Margin Requirement or deposit additional funds into your account in order to increase the equity amount and satisfy the Margin Call.When you are in Margin Call you are not allowed to open any new Positions. Further Margin Calls will be made if the AUDUSD keeps falling during the day. Please refer to the following example. Example of Gong Long and going into further Margin Call on Margin Foreign ExchangeAt 10 a.m. AUDUSD falls to 0.91800/82 Calculation Account Display Your account is marked to market at the current market price which will change your account balance Unrealised Loss:(0.92800 – 0.91800) x 300,000 = USD 3,000 This amount will be booked in your AUD base currency at the rate of 0.91800 = AUD 3,267.97
New Equity:
AUD 5,010.30 – AUD 3,267.97 = AUD 1,742.33
Total Equity AUD 1,742.33 Your Margin Requirement remains at AUD 3,000 AUD 300,000 x 1% = AUD 3,000 Margin Requirement AUD 3,000 Free Equity is your Total Equity less Margin Requirement AUD 1,742.33 – AUD 3,000.00 = AUD -1,257.67 Free Equity AUD -1,257.67 As your Free Equity has fallen further, you would now be on a second Margin Call N/A Second Margin Call AUD 1,257.67 As you have not responded to the first Margin Call and your account debit has fallen further you will be sent a second Margin Call. You need to do one of the following: - either depositing additional funds in to your account; or
- close or reduce one or more or parts of your open Position(s)
If you choose to deposit additional funds into your account, these funds must be Cleared Funds before they will be treated as having satisfying your Margin Call requirements.
Alternatively, you may wish to consider whether to place a Stop Loss order to try to avoid a deficit balance on your account.
- Example of Going Long and going into Margin Call on Margin Foreign Exchange
- 3.4 – Example of going short and going into Margin Call on Margin Foreign Exchange
- Example of Going Long and making a profit on Margin FX Contracts
You maintain an account with AxiCorp and your account has an Opening balance of AUD 5,000 and you believe that the price of the Australian Dollar (AUD) is going to depreciate against the US Dollar (USD) which is currently at 0.9278/80. You decide to sell AUD 300,000 against USD at the current price. DAY ONEOpening a Position Calculation Account Display The price of AUDUSD spot is 0.92780 (bid price)/0.92800 (offer price) Contract AmountAUD 300,000 x 0.92780 = USD 278,340 Opening Balance AUD 5,000 You sell AUD 300,000 at the exchange rate of 0.92780 You pay no commission for this trade. AxiCorp charges no commission for trading Margin FX Contracts Your Margin Requirement for this trade is 1% of the amount tradedTherefore, your Margin Requirement to open this Position is AUD 3,000 AUD 300,000 x 1% = AUD 3,000 Initial Margin Requirement AUD 3,000 Your Free Equity is Total Equity less your Margin Requirement AUD 5,000 – AUD 3,000 = AUD 2,000 Free Equity AUD 2,000 You decide to hold the Position overnight. However, in the US market, the AUDUSD had risen to close at 0.93500 due to a worse than expected US employment figure.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the Interbank Market, which fluctuates daily and represents the difference between the interest differential of the two currency pairs involved. The Rollover Rate is variable according to currency pairs and calculated as set out at section 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display A buy trade at 0.93500 and a sell trade at 0.93485 will be generated simultaneously to reflect the Rollover Charge.As the AUD is the higher yielding currency and you are short AUD, so your account is debited with USD 10.50 Daily Rollover Charge(0.93500 – 0.93485) x 300000 = USD 10.50 This amount will be booked in your base currency, which is AUD at 0.93500 = AUD 11.23
Total Equity will be
AUD 5,000 – AUD 11.23 = AUD 4,988.77
Total Equity AUD 4,988.77 Your open Position will remain at the historical purchase price of 0.92800This way you can keep track of your original purchase price at all times Your account is marked to market at the closing price which will change your account balance Unrealised Loss:(0.92780 – 0.93500) x 300,000 = USD 2,160 This amount will be booked in your AUD base currency at the rate of 0.93500 = AUD 2,310.16
New Equity:
AUD 4,988.77 – AUD 2,310.16 = AUD 2,678.61
Total Equity AUD 2,678.61 Your Margin Requirement remains at AUD 3,000 AUD 300,000 x 1% = AUD 3,000 Margin Requirement AUD 3,000 Your Free Equity is Total Equity less your Margin Requirement AUD 2,678.61 – AUD 3,000 = AUD -321.39 Free Equity AUD -321.39 As your Free Equity has fallen into a debit balance, you would now be on a Margin Call N/A Margin Call AUD 321.39 In this example, the AUDUSD had moved against you and your Total Equity balance fell below your Margin Requirement, your account will be placed on Margin Call. When your account moves into deficit you have two options. You can either reduce your Position in order to reduce your Margin Requirement or deposit additional funds into your account in order to increase the equity amount and satisfy the Margin Call.When you are in Margin Call you are not allowed to open any new Positions. Further Margin Calls will be made if the AUDUSD keeps going up during the day. Please see the following example. Example of Going Short and going into further Margin Call on Margin Foreign ExchangeAt 10 a.m. AUDUSD rallies to 0.93800/82 Calculation Account Display Your account is marked to market at the current market price which will change your account balance Unrealised Loss:(0.92780 – 0.93800) x 300,000 = USD3,060 This amount will be booked in your AUD base currency at the rate of 0.93800 = AUD 3,262.26
New Equity:
AUD 4,988.77 – AUD 3,262.26 = AUD 1,726.51
Total Equity AUD 1,726.51 Your Margin Requirement remains at AUD 3,000 AUD 300,000 x 1% = AUD 3,000 Margin Requirement AUD 3,000 Free Equity is your Total Equity less Margin Requirement AUD 1,726.51 – AUD 3,000.00 = AUD -1,273.49 Free Equity AUD -1,273.49 As your Free Equity has fallen further, you would now be on a second Margin Call N/A Second Margin Call AUD 1,273.49 As you have not responded to the first Margin Call and your account debit has fallen further you will be sent a Second Margin Call. You need to do one of the following: - either depositing additional funds in to your account; or
- closing or reducing one or more or part of your open Position(s)
If you choose to deposit additional funds into your account, these funds must be Cleared Fund before they will be treated as having satisfying your Margin Call requirements.
Alternatively, you may wish to consider whether to place a Stop Loss order to try to avoid a deficit balance on your account.
- Example of Going Long and making a profit on Margin FX Contracts
- 3.5 – Example of going long on Bullion CFD (gold)
- Example of Going Long and making a profit on Gold
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of spot Gold is going to appreciate against the US Dollar (USD) which is currently at 982.80/3.30. You decide to buy 100 OZ of Gold (1 contract) at the current price. DAY ONEOpening a Position Calculation Account Display The price of spot Gold is 982.80 (bid price)/983.30 (offer price) Contract Value:100 OZ x 983.30 = USD 98,330 Opening Balance AUD 20,000 You buy 100 OZ (1 contract) at the exchange rate of 983.30 You pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Your Margin Requirement for this trade is 1% of the amount traded 100 OZ x 983.30 x 1% = USD 983.30This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 1,059.60 Initial Margin Requirement AUD 1,059.60 Your Free Equity is Total Equity less your Margin Requirement 20,000 – 1,059.60 = 18940.40 Free Equity AUD 18,940.40 You decide to hold the Position overnight. The closing price of spot Gold for the day was 983.30, the same as your purchase price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the Interbank Market, which fluctuates daily and represents the difference between the interest differential of Gold and USD involved. The Rollover Rate is variable according to currency pairs and calculated as set out at Section 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display Your account will be charged with USD8.10 for being long spot Gold Daily Rollover ChargeUSD 8.10 This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 8.80
Total Equity will be
$20,000 – 8.8 = $19,991.20
Balance AUD 19,991.20 Your open Position will remain at the historical purchase price of 983.30This way you can keep track of your original purchase price at all times Let say, at 11:30 a.m., spot gold has moved up to 990.00Your Position is marked to market which will change your account balance Unrealised Profit(990.00 – 983.30) x 100 OZ = USD 670.00 This amount will be booked in your AUD base currency at the rate of 0.9330 = AUD 718.11
New Equity Balance
19,991.20 + 718.11 = 20,709.31
Total Equity AUD 20,709.31 Your Margin Requirement 100 OZ x $990.00 x 1% = USD 990 = AUD 1,061.09 Initial Margin Requirement AUD 1,061.09 Your Free Equity is Total Equity less your Margin Requirement AUD 20,709.31 – 1,061.09 = $19,648.22 Free Equity AUD 19,648.22 At 4 p.m. you decided to close your Position as spot Gold has appreciated to 995.00/60Closing the Position Calculation Account Display You sell 100 OZ at bid price of 995.00 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for Margin Commodity Trading Contract Value:100 OZ x 995.00 = USD 99,500 N/A N/A Realised Profit (995.00 – 983.30) x 100 = USD 1,170.00 (AUD 1,254.02)New Balance 19,991.20 + 1,254.02 = AUD 21,245.22
Balance AUD 21,245.22 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement AUD 21,245.22 – 0.0 = AUD 21,245.22 Free Equity AUD 21,245.22 In this example you were correct in predicting spot Gold will appreciate against the USD. After commission and daily Rollover Charge for one day you would have made AUD 1,245.82 profit. However, if your prediction was wrong and the price had moved in the opposite direction by an equal amount, your loss would have been AUD 1,237.06. Please see the example below for how this loss is calculated. - Example of Going Long and making a loss on Gold
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of spot Gold is going to appreciate against the US Dollar (USD) which is currently at 982.80/3.30. You decide to buy 100 OZ of Gold (1 contract) at the current price. DAY ONEOpening a Position Calculation Account Display The price of spot Gold is 982.80 (bid price)/983.30 (offer price) Contract Value:100 OZ x 983.30 = USD 98,330 Opening Balance AUD 20,000 You buy 100 OZ (1 contract) at the exchange rate of 983.30 You pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Your Margin Requirement for this trade is 1% of the amount traded 100 OZ x 983.30 x 1% = USD 983.30This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 1,059.60 Initial Margin Requirement AUD 1,059.60 Your Free Equity is Total Equity less your Margin Requirement 20,000 – 1,059.60 = 19,000 Free Equity AUD 18,940.40 You decide to hold the Position overnight. The closing price of spot Gold for the day was 983.30, the same as your purchase price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the Interbank Market, which fluctuates daily and represents the difference between the interest differential of Gold and USD involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display Your account will be charged with USD8.10 for being Long spot Gold Daily Rollover ChargeUSD 8.10 This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 8.80
Total Equity will be
$20,000 – 8.8 = $19,991.20
Balance AUD 19,991.20 Your open Position will remain at the historical purchase price of 983.30This way you can keep track of your original purchase price at all times Let say, at 11:30 a.m., spot gold has weakened to 977.00Your Position is marked to market which will change your account balance Unrealised Loss(977.00 – 983.30) x 100 OZ = USD 630.00 This amount will be booked in your AUD base currency at the rate of 0.9200 = AUD 684.78
New Equity Balance
19,991.20 – 684.78 = 19,306.42
Total Equity AUD 19,306.42 Your Margin Requirement 100 OZ x $977.00 x 1% = USD 977 = AUD 1,061.96 Initial Margin Requirement AUD 1,061.96 Your Free Equity is Total Equity less your Margin Requirement AUD 19,306.42 – 1,061.96 = AUD 18,244.46 Free Equity AUD 18,244.46 At 4 p.m. you decided to close your Position as your prediction was wrong spot Gold has fallen further to 970.00/60Closing the Position Calculation Account Display You sell 100 OZ at bid price of 977.00/06 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Contract Value:100 OZ x 972 = USD97,200 N/A N/A Realised Loss (972 – 983.30) x 100000 = USD 1,130 (AUD 1,228.26)New Balance $19,991.20 – 1,228.26 = $18,762.94
Balance AUD 18,762.94 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement $18,782.94 – 0.0 = $18,762.94 Free Equity AUD 18,762.94 In this example, you were wrong in predicting spot Gold will appreciate against the USD. After commission and daily Rollover Charge for one day you would have made AUD 1,237.06 loss.
- Example of Going Long and making a profit on Gold
- 3.6 – Example of going short on Bullion CFD (gold)
- Example of Going Short and making a profit on Gold
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of spot Gold is going to depreciate against the US Dollar (USD) which is currently at 982.70/3.30. You decide to sell 100 OZ of Gold (1 contract) at the current price. DAY ONEOpening a Position Calculation Account Display The price of spot Gold is 982.80 (bid price)/983.30 (offer price) Contract Value:100 OZ x 982.70 = USD 98,270 Opening Balance AUD 20,000 You sell 100 OZ (1 contract) at the exchange rate of 982.70 You pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Your Margin Requirement for this trade is 1% of the amount traded 100 OZ x 982.70 x 1% = USD 982.70This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 1,058.94 Initial Margin Requirement AUD 1,058.94 Your Free Equity is Total Equity less your Margin Requirement $20,000 – 1,058.94 = $18,941.06 Free Equity AUD 18,941.06 You decide to hold the Position overnight. The closing price of spot Gold for the day was 982.70, the same as your purchase price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of Gold and USD involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display Your account will be credited with USD 7.20 for being short spot Gold Daily Rollover ChargeUSD 7.20 This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 7.80
Total Equity will be
$20,000 + 7.8 = $20,007.80
Balance AUD 20,007.80 Your open Position will remain at the historical purchase price of 982.70This way you can keep track of your original purchase price at all times Let say, at 11:30 a.m., spot gold has moved down to 976.00Your Position is marked to market which will change your account balance Unrealised Profit(976.00 – 982.70) x 100 OZ = USD 670.00 This amount will be booked in your AUD base currency at the rate of 0.9200 = AUD 728.26
New Equity Balance
20,007.80 + 728.26 = 20,736.06
Total Equity AUD 20,736.06 Your Margin Requirement 100 OZ x $976.00 x 1% = USD 976 = AUD 1,060.87 Initial Margin Requirement AUD 1,060.87 Your Free Equity is Total Equity less your Margin Requirement AUD 20,736.06 – 1,060.87 = $19,675.19 Free Equity AUD 19,675.19 At 4 p.m. you decided to close your Position as spot Gold has depreciated to 970.80/40Closing the Position Calculation Account Display You buy 100 OZ at offer price of 971.40 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Contract Value:100 OZ x 971.40 = USD 97,140 N/A N/A Realised Profit (971.40 – 982.70) x 100 = USD 1,130 (AUD 1,228.26)New Balance 20,007.80 + 1,228.26 = AUD 21,236.06
Total Equity AUD 21,236.06 Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement AUD 21,236.06 – 0.0 = AUD 21,236.06 Free Equity AUD 21,236.06 In this example you were correct in predicting spot Gold will depreciate against the USD. After commission and daily Rollover Charge for one day you would have made AUD 1,236.06 profit. However, if your prediction was wrong and the price had moved in the opposite direction by an equal amount, your loss would have been AUD 1,220.46. Please see the example below for how this loss is calculated. - Example of Going Short and making a loss on Gold
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of spot Gold is going to depreciate against the US Dollar (USD) which is currently at 982.70/3.30. You decide to sell 100 OZ of Gold (1 contract) at the current price. DAY ONEOpening a Position Calculation Account Display The price of spot Gold is 982.70 (bid price)/983.30 (offer price) Contract Value:100 OZ x 982.70 = USD 98,270 Opening Balance AUD 20,000 You sell 100 OZ (1 contract) at the exchange rate of 982.70 You pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Your Margin Requirement for this trade is 1% of the amount traded 100 OZ x 982.70 x 1% = USD 982.70This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 11058.94 Initial Margin Requirement AUD 1,058.94 Your Free Equity is Total Equity less your Margin Requirement $20,000 – 1,058.94 = AUD 18,941.06 Free Equity AUD 18,941.06 You decide to hold the Position overnight. The closing price of spot Gold for the day was 982.70, the same as your purchase price.Because you have decided to hold your Position overnight you will incur a daily Rollover Charge, which is calculated according to the overnight swap rate in the interbank market, which fluctuates daily and represents the difference between the interest differential of Gold and USD involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display Your account will be credited with USD 7.20 for being Short spot Gold Daily Rollover ChargeUSD 7.20 This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 7.80
Total Equity will be
$20,000 + 7.80 = $20,007.80
Balance AUD 20,007.80 Your open Position will remain at the historical purchase price of 983.30This way you can keep track of your original purchase price at all times Let say, at 11:30 a.m., spot gold has moved up to 989.40Your Position is marked to market which will change your account balance Unrealised Loss(989.40 – 982.70) x 100 OZ = USD 670.00 This amount will be booked in your AUD base currency at the rate of 0.9200 = AUD 728.26
New Equity Balance
$20,007.78 – 728.26 =19,279.54
Total Equity AUD 19,279.54 Your Margin Requirement 100 OZ x $989.40 x 1% = USD 989.40 = AUD 1,075.43 Initial Margin Requirement AUD 1,075.43 Your Free Equity is Total Equity less your Margin Requirement AUD 19,279.54 – 1,075.43 = AUD 18,204.11 Free Equity AUD 18,204.11 At 4 p.m. you decided to close your Position as your prediction was wrong spot Gold has risen further to 993.40/4.00Closing the Position Calculation Account Display You buy 100 OZ at offer price of 994.00 to close your PositionYou pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Contract Value:100 OZ x 994 = USD 99,400 N/A N/A Realised Loss (994 – 982.70) x 100000 = USD 1,130 (AUD 1,228.26)New Balance $20,007.80 – 1,228.26 = $18,779.54
Balance AUD 18,779.54> Initial Margin Requirement will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less Margin Requirement $18,779.54 – 0.0 = $18,779.54 Free Equity AUD 18,779.54 In this example, you were wrong in predicting spot Gold will depreciate against the USD. After commission and daily Rollover Charge for one day you would have made AUD 1,220.46 loss.
- Example of Going Short and making a profit on Gold
- 3.7 – Example of going long on Bullion CFD (gold) and going into Margin Call
- Example of Going Short and making a profit on Gold
You opened an account with AxiCorp and your account has an opening balance of AUD 20,000 and you believe that the price of spot Gold is going to appreciate against the US Dollar (USD) which is currently at 982.80/3.30. You decide to buy 1,000 OZ of Gold (10 contract) at the current price. DAY ONEOpening a Position Calculation Account Display The price of spot Gold is 982.70 (bid price)/983.30 (offer price) Contract Value:1,000 OZ x 983.30 = USD 983,300 Opening Balance AUD 20,000 You buy 1,000 OZ (10 contract) at the exchange rate of 983.30 You pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Your Margin Requirement for this trade is 1% of the amount traded 1,000 OZ x 983.30 x 1% = USD 9,833This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 10,595.91 Initial Margin Requirement AUD 10,595.91 Your Free Equity is Total Equity less your Margin Requirement 20,000 – 10,595.90 = $9,404.09 Free Equity AUD 9,404.09 You decide to hold the Position overnight. The closing price of spot Gold for the day was lower at 973.80, due to a better than expected US employment figure.Because you have decided to hold your Position overnight you will incur a Daily Rollover Charge, which is calculated according to the overnight swap rate in the Interbank Market, which fluctuates daily and represents the difference between the interest differential of Gold and USD involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display Your account will be charged with USD 81.00 for being Long spot Gold Daily rollover chargeUSD 81.00 This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 87.28
Total Equity will be
AUD 20,000.00 – 87.28 = AUD 19,912.72
Balance AUD 19,912.72 Your open Position will remain at the historical purchase price of 983.30This way you can keep track of your original purchase price at all times Your Position is marked to market which will change your account balance Unrealised Loss(973.80 – 983.30) x 1,000 OZ = USD 9,500 This amount will be booked in your AUD base currency at the rate of 0.9230 = AUD 10,292.52
New Equity Balance
AUD 19,912.72 – 10,292.52 = AUD 9,620.20
Total Equity AUD 9,620.20 Your Margin Requirement for this trade is 1% of the amount traded 1,000 OZ x $973.80 x 1% = USD 9,738 = AUD 10,550.38 Initial Margin Requirement AUD 10,550.38 Your Free Equity is Total Equity less your Margin Requirement AUD 9,620.20 – 10,550.38 = AUD -930.18 Free Equity AUD -930.18 As your Free Equity has fallen into a deficit, you would now be on a Margin Call N/A Margin Call AUD 930.18 In this example, the price of spot Gold had moved against you and your Total Equity Balance fell below your Margin Requirement, your account will be placed on Margin Call. When your account moves into deficit you have two options. You can either reduce your Position in order to reduce your Margin Requirement or deposit additional funds into your account in order to increase the equity amount and satisfy the Margin Call.When you are in Margin Call you are not allowed to open any new Positions. Further Margin Calls will be made if spot Gold keeps falling during the day. Please see the following example. Example of Going Long and going into further Margin Call on GoldAt 10 a.m. spot Gold falls to 973.00/60 Calculation Account Display Your account is marked to market at the current market price which will change your account balance Unrealised Loss:(973.00 – 983.30) x 1,000 = USD 10,300 This amount will be booked in your AUD base currency at the rate of 0.9180 = AUD 11,220.04
New Equity:
AUD 19,912.72 – 11,220.04 = AUD 8,692.68
Total Equity AUD 8,692.68 Your Margin Requirement for this trade is 1% of the amount traded 1,000 x 973.00 x 1% = USD 9,730 = AUD 10,599.13 Margin Requirement AUD 10,599.13 Free Equity is your Total Equity less Margin Requirement AUD 8,692.68 – $10,599.13 = AUD -1,906.45 Free Equity AUD -1,906.45 As your Free Equity has fallen further, you would now be on a second Margin Call N/A Second Margin Call AUD 1,906.45 As you have not responded to the first Margin Call and your account debit has fallen further you will be sent a second Margin Call. You need to do one of the following: - either depositing additional funds in to your account; or
- close or reduce one or more or part of your open Position(s)
If you choose to deposit additional funds into your account, these funds must be Cleared Funds before they will be treated as having satisfying your Margin Call requirements.
Alternatively, you may wish to consider whether to place a Stop Loss Order to try to avoid a deficit balance on your account.
- Example of Going Short and making a profit on Gold
- 3.8 – Example of going short on Bullion CFD (gold) and going into Margin Call
- Example of Going Short and going into Margin Call on Gold
You opened an account with AxiCorp and your account has an opening balance of AUD20,000 and you believe that the price of spot Gold is going to depreciate against the US Dollar (USD) which is currently at 982.70/3.30. You decide to sell 1,000 OZ of Gold (10 contract) at the current price. DAY ONEOpening a Position Calculation Account Display The price of spot Gold is 982.70 (bid price)/983.30 (offer price) Contract Value:1,000 OZ x 982.70 = USD 982,700 Opening Balance AUD 20,000 You sell 1,000 OZ (10 contract) at the exchange rate of 982.70 You pay no commission for this trade. AxiCorp charges no commission for trading Margin Commodity Contracts Your Margin Requirement for this trade is 1% of the amount traded 1,000 OZ x 982.70 x 1% = USD 9,827This amount will be booked in your base currency, which is AUD at 0.9280 = AUD10,589.44 Initial Margin Requirement AUD 10,589.44 Your Free Equity is Total Equity less your Margin Requirement AUD 20,000.00 – 10,589.44 = AUD 9,410.56 Free Equity AUD 9,410.56 You decide to hold the Position overnight. The closing price of spot Gold for the day was higher at 992.20, due to a worst than expected US employment figure.Because you have decided to hold your Position overnight you will incur a Daily Rollover Charge, which is calculated according to the overnight swap rate in the Interbank Market, which fluctuates daily and represents the difference between the interest differential of Gold and USD involved. The Rollover Rate is variable according to currency pairs and calculated as set out in clause 13.6 of our Client Agreement. DAY TWOThe Next Day Calculation Account Display Your account will be credited with USD 72.00 for being Short spot Gold Daily rollover chargeUSD 72.00 This amount will be booked in your base currency, which is AUD at 0.9280 = AUD 77.60
Total Equity will be
AUD 20,000.00 + 77.60 = AUD 20,077.60
Balance AUD 20,077.60 Your open Position will remain at the historical purchase price of 982.70This way you can keep track of your original purchase price at all times Your Position is marked to market which will change your account balance Unrealised Profit(992.20 – 982.70) x 1,000 OZ = USD 950.00 This amount will be booked in your AUD base currency at the rate of 0.9200 = AUD 10,326.09
New Equity Balance
AUD 20,077.60 – 10,326.09 = AUD 9,751.51
Total Equity AUD 9,751.51 Your Margin Requirement 1,000 OZ x $992.20 x 1% = USD 9,922 = AUD 10,784.78 Initial Margin Requirement AUD 10,784.78 Your Free Equity is Total Equity less your Margin Requirement AUD 9,751.51 – 10,784.78 = AUD -1,033.27 Free Equity AUD -1,033.27 As your Free Equity has fallen into a deficit, you would now be on a Margin Call N/A Margin Call AUD 1,033.27 In this example, the price of spot Gold had moved against you and your Total Equity Balance fell below your Margin Requirement, your account will be placed on Margin Call. When your account moves into deficit you have two options. You can either reduce your Position in order to reduce your Margin Requirement or deposit additional funds into your account in order to increase the equity amount and satisfy the Margin Call.When you are in Margin Call you are not allowed to open any new Positions. Further Margin Calls will be made if spot Gold keeps falling during the day. Please refer to the following example. Example of Going Short and going into further Margin Call on GoldAt 10 a.m. spot Gold moves higher to 992.40/3.00 Closing the Position Calculation Account Display Your account is marked to market at the current market price which will change your account balance Unrealised Loss:(993.00 – 982.70) x 1,000 = USD 10,300 This amount will be booked in your AUD base currency at the rate of 0.9330 = AUD 11,039.65
New Equity:
AUD 20,077.60 – 11,039.65 = AUD 8,960.34
Total Equity AUD 8,960.34 Your Margin Requirement for this trade is 1% of the amount traded 1,000 x 993.00 x 1% = USD 9,930 = AUD 10,643.09 Margin Requirement AUD 10,643.09 Free Equity is your Total Equity less Margin Requirement AUD 8,960.34 – $10,643.09 = AUD -1,682.75 Free Equity AUD -1,682.75 As your Free Equity has fallen further, you would now be on a second Margin Call N/A Second Margin Call AUD 1,682.75 As you have not responded to the first Margin Call and your account debit has fallen further you will be sent a second Margin Call. You need to do one of the following: - either depositing additional funds in to your account; or
- close or reduce one or more or part of your open Position(s)
If you choose to deposit additional funds into your account, these funds must be Cleared Funds before they will be treated as having satisfying your Margin Call requirements.
Alternatively, you may wish to consider whether to place a Stop Loss Order to try to avoid a deficit balance on your account.
- Example of Going Short and going into Margin Call on Gold
- 3.9 – Example of going short on Index Futures CFD
- Example of Going Short and making a profit on SPI 200 Index Futures CFDs
You opened an account with AxiCorp and your account has an opening balance of AUD 10,000 DAY ONEOpening a Position Calculation Account Display The price of SPI 200 Futures Index CFD is 3439 (bid price)/3441 (offer price) Value of the Contract10 x 3439 = $34,390 Opening Equity AUD 10,000 You sell 10 SPI 200 Futures Index CFDs at the offer price of 3439 You will pay no commission when you trade our Index Futures CFDs Your Initial Margin Requirement for this trade is the number of CFDs multiplied by trade price multiplied by the margin rate.Your initial Margin Requirement to open this Position is $343.90 10 x 3439 x 1% = $343.90 Margin Requirement $343.90 Free Equity is your Total Equity less your Margin Requirement AUD 10,000.00 – 343.90 = AUD 9,655.90 Free Equity $9,656.10 You decided to hold the Position overnight. The closing price for SPI 200 Futures Index CFD for the day was 3441, the same as your purchase price. DAY TWOThe Next Day Calculation Account Display Daily financing charges or benefits do not apply to Index Futures CFDs N/A Total Equity AUD 10,000.00 Following a negative movement overseas the SPI 200 Futures Index opened lower at 2897/99 Unrealised Profit:(3439-2899) x 10 = $540.00 New Equity Balance:
AUD 10,000.00 + 540.00 = AUD 10,540.00
Total Equity AUD 10,540.00 Your Position is marked to market at 2899. Your open Position will remain at the historical purchase price of 3441This way you can keep track of your original sell price at all times Margin Requirement:10 x 2899 x 1% = $289.90 New Margin Requirement AUD 289.90 Free Equity is your Total Equity less your Margin Requirement AUD 10,540.00 – 289.90 = AUD 10,250.10 Free Equity AUD 10,250.10 At 3:45 p.m. you decided to close your Position. The market is quoted at 2849Closing the Position Calculation Account Display You buy 10 SPI 200 Index Futures CFDs at 2849 market offer price Value of the Contract10 x2849 = $28,490.00 Total Equity AUD 10,000.00 You will pay no commission when you trade Index Futures CFDs Realised Profit (3,439 – 2,849) x 10 = $590New Equity Balance: AUD 10,000 + 590 = AUD 10,590.00
Total Equity AUD 10,590.00 Free Equity is your Total Equity less your Margin Requirement AUD 10,590.00 – 0.00 = AUD 10,590.00 Free Equity AUD 10,590.00 In this example, you were right in predicting the SPI 200 Index Futures will go up and you would have made AUD 590.00 profit. However, if your prediction was wrong and the price of the SPI 200 Index Futures moved in the opposite direction by an equal amount, your loss would have been AUD 590.00. Please see the example below for how this loss is calculated. - Example of Going Short and making a loss on SPI 200 Index futures CFDs
You opened an account with AxiCorp and your account has an opening balance of AUD 10,000 DAY ONEOpening a Position Calculation Account Display The price the SPI 200 Index Futures CFD is 3439 (bid price)/3441 (offer price) Value of the Contract10 x 3439 = $34,390 Opening Balance AUD 10,000 You sell 10 SPI 200 Index Futures CFDs at the offer price of 3441. You will pay no commission when you trade our Index Futures CFDs Your Initial Margin Requirement for this trade is the number of CFDs multiplied by trade price multiplied by the Margin rate.Your initial Margin Requirement to open this Position is $343.90 10 x 3439 x 1% = $343.90 Margin Requirement AUD 343.90 Free Equity is your Total Equity less your Margin Requirement AUD 10,000.00 – 343.90 = AUD 9,655.90 Free Equity AUD 9,656.10 You decided to hold the Position overnight. The closing price for the SPI 200 Index Futures CFD for the day was 3441 DAY TWOThe Next Day Calculation Account Display Daily financing charges or benefits do not apply to Futures CFDs N/A Total Equity AUD 10,000.00 Following a positive movement overseas the SPI 200 Futures Index opened higher at 3977/79 Unrealised Profit:(2439 – 3799) x 10 = -$540.00 New Equity Balance:
AUD 10,000.00 – 540 = AUD 9,460.00
Total Equity AUD 9,460.00 Your Position is marked to market at 3979. Your open Position will remain at the historical purchase price of 3439This way you can keep track of your original purchase price at all times. Margin Requirement:10 x 3979 x 1% = $397.90 New Margin Requirement AUD 397.90 Free Equity is your Total Equity less your Margin Requirement AUD 9,460.00 – 397.90 = AUD 9,062.10 Free Equity AUD 9,061.10 At 3:45 p.m. you decided to close your Position. The market is quoted at 3382/84.Closing the Position Calculation Account Display You BUY 10 AUS Index Futures CFDs at 4029 market offer price Contract Value:10 x 4029 = $33,820 Total Equity AUD 19,898.60 You will pay no commission when you trade our Index Futures CFDs Realised Loss (3439 – 4029) x 10 =-$590.00New Equity Balance: AUD 10,000 – 590.00 = AUD 9,410.00
Total Equity AUD 9,410.00 Initial Margin Requirement Will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less your Margin Requirement AUD 9,410.00 – 0.00 = AUD 9,410.00 Free Equity AUD 9,410.00 In this example, you were wrong in predicting the SPI 200 Index Futures will go up and you would have made a AUD 590.00 loss.
- Example of Going Short and making a profit on SPI 200 Index Futures CFDs
- 3.10 – Example of going long on Index Futures CFD
- Example of Going Long and making a profit on SPI 200 Index Futures CFDs
- Example of Going Long and making a loss on SPI 200 Index future
- Is AxiTrader Regulated?
- Example of Going Long and making a profit on Margin FX Contracts
You opened an account with AxiCorp and your account has an opening balance of AUD 10,000 DAY ONEOpening a Position Calculation Account Display The price of SPI 200 Futures Index CFD is 3439 (bid price)/3441 (offer price) Value of the Contract10 x 3441 = $34,410 Opening Equity AUD 10,000 You buy 10 SPI 200 Futures Index CFDs at the offer price of 3441. You will pay no commission when you trade Index Futures CFDs Your Initial Margin Requirement for this trade is the number of CFDs multiplied by trade price multiplied by the margin rate.Your initial Margin Requirement to open this Position is $344.10 10 x 3441 x 1% = $344.10 Margin Requirement AUD 344.10 Free Equity is your Total Equity less your Margin Requirement AUD 10,000.00 – 344.10 = AUD 9,655.90 Free Equity AUD 9,655.90 You decided to hold the Position overnight. The closing price for SPI 200 Futures Index CFD for the day was 3441, the same as your purchase price. DAY TWOThe Next Day Calculation Account Display Daily financing charges or benefits do not apply to Index Futures CFDs N/A Total Equity AUD 10,000.00 Following a Position movement overseas the SPI 200 Futures Index opened higher at 3495/97 Unrealised Profit:(3495-3441) x 10 = $540.00 New Equity Balance:
AUD 10,000.00 + 540.00 = AUD 10,540.00
Total Equity AUD 10,540.00 Your Position is marked to market at 3495. Your open Position will remain at the historical purchase price of 3441This way you can keep track of your original purchase price at all times. Margin Requirement:10 x 3495 x 1% = $349.50 New Margin Requirement AUD 349.50 Free Equity is your Total Equity less your Margin Requirement AUD 10,540.00 – 349.50 = AUD 10,190.50 Free Equity AUD 10,190.50 At 3:45 p.m. you decided to close your Position. The market is quoted at 3500Closing the Position Calculation Account Display You sell 10 SPI 200 Index Futures CFDs at 3500 market bid price Value of the Contract10 x 3500 = AUD 35,000 Total Equity AUD 8,819.50 You will pay no commission when you trade Index Futures CFDs Realised Profit (3,500 – 3,441) x 10 = AUD 590New Equity Balance: AUD 10,000.00 + 590.00 = AUD 10,590.00
Total Equity AUD 10,590.00 Free Equity is your Total Equity less your Margin Requirement $10,590.00- $0 = $10,590.00 Free Equity AUD 10,590.00 In this example, you were right in predicting the SPI 200 Index Futures will go up and you would have made AUD 590.00 profit. However, if your prediction was wrong and the price of the SPI 200 Index Futures moved in the opposite direction by an equal amount, your loss would have been AUD 590.00. Please see the example below for how this loss is calculated. - Example of Going Long and making a profit on Margin FX Contracts
You opened an account with AxiCorp and your account has an opening balance of AUD 10,000 DAY ONEOpening a Position Calculation Account Display The price the SPI 200 Index Futures CFD is 3439 (bid price)/3441 (offer price) Contract Value:10 x 3441 = AUD 34,410.00 Opening Equity AUD 10,000 You buy 10 SPI 200 Index Futures CFDs at the offer price of 3441. You will pay no commission when you trade our Index Futures CFDs Your Initial Margin Requirement for this trade is the number of CFDs multiplied by trade price multiplied by the margin rate.Your initial Margin Requirement to open this Position is $344.10 10 x 3441 x 1% = AUD 344.10 Margin Requirement AUD 344.10 Free Equity is your Total Equity less your Margin Requirement AUD 10,000.00 – 344.10 = AUD 9,655.90 Free Equity AUD 9,655.90 You decided to hold the Position overnight. The closing price for the SPI 200 Index Futures CFD for the day was 3441, the same as your purchase price. DAY TWOThe Next Day Calculation Account Display Daily financing charges or benefits do not apply to Index Futures CFDs N/A Total Equity AUD 10,000.00 Following a negative movement overseas the SPI 200 Futures Index opened lower at 3387/89 Unrealised Profit:(3387- 3441) x 10 = -540.00 New Equity Balance:
AUD 10,000.00 – 540 = AUD 9,460.00
Total Equity AUD 9,460.00 Your Position is marked to market at 3495. Your open Position will remain at the historical purchase price of 3441This way you can keep track of your original purchase price at all times. Margin Requirement:10 x 3387 x 1% = AUD 338.70 New Margin Requirement AUD 338.70 Free Equity is your Total Equity less your Margin Requirement AUD 9,460.00 – 338.70 = AUD 9,121.30 Free Equity AUD 9,121.30 At 3:45 p.m. you decided to close your Position. The market is quoted at 3382/84Closing the Position Calculation Account Display You sell 10 AUS Index Futures CFDs at 3382 market bid price Contract Value:10 x 3382 = $33,820 Total Equity AUD 19,898.60 You will pay no commission when you trade our Index Futures CFDs Realised Loss (3382 – 3441) x 10 = AUD -590.00New Equity Balance: AUD 10,000.00 – 590.00 = AUD 9,410.00
Total Equity AUD 9,410.00 Initial Margin Requirement Will be zero because you have closed your Position N/A Margin Requirement AUD 0.00 Free Equity is your Total Equity less your Margin Requirement AUD 9,410.00 – 0.00 = AUD 9,410 Free Equity AUD 9,410.00 In this example, you were wrong in predicting the SPI 200 Index Futures will go up and you would have made a AUD 590.00 loss.
- Example of Going Long and making a profit on Margin FX Contracts
- 3.1 – Examples of Going Long in Margin FX
- IBR 4 – Online Trading Statements
- 4.1 – Delivery of confirmations and statements electronically
At any time you execute a transaction with us, a confirmation of the executed trade will appear in the Trading Platform. Daily and monthly statements will also be made available to you through the Trading Platform following their respective trading periods. You may print these daily and monthly statements for your records.
- 4.2 – Operating your Account through AxiCorp’s Trading Platform
When using AxiCorp’s Trading Platform your Positions may be viewed at any point in real-time, as well as all deals, orders, pending orders and available statements using the dealing platform. Under clause 6.8 of the Client Agreement you agree to use the Trading Platform to:
- confirm all transactions entered into with us; and
- monitor your obligations to us.
We may make available to you documents updating the PDS (including the Client Agreement), the AxiCorp Product Schedule and the FSG, including any supplementary, revised and new PDS and FSGs by either:
- sending them to you by email or other electronic means;
- posting them on our Website;
- sending to you an electronic link to the relevant document by email or other electronic means; or
- sending them as otherwise permitted by law.
- 4.3 – Daily statements
Following our end of day settlement time, provided you have dealt or have an open Position, we will cause to be produced electronically a daily statement which will be emailed to you and then made available on the Trading Platform.Daily Statements include details of:
- your open Positions;
- your new Positions;
- the opening cash balance on your Account, together with details of Account movements such as deposits, withdrawals or settlements;
- your closing Account balance for the day;
- profits or losses made on Open Positions, that is, your Open Trade Equity;
- the value of your Positions and movements on your Account in the currency in which your Account is denominated, indicating, where appropriate the consolidation rates used;
- other items affecting your Account, such as Rollover Benefits or Rollover Charges applied to your Account;
- profit or loss made on open Positions (open trade equity);
- the liquidation value;
- your Total Margin Requirement; and
- your Margin excess or deficit.
- 4.4 – Monthly statements
Following month end, we will produce an electronic version of your trading statement which will be emailed to you and also be available on the Trading Platform. This will provide the same details as the daily statements, but cover all account movements and Positions opened for the month.
- 4.5 – Checking of confirmations
It is imperative that you check all the contents of the Confirmations of your trades and you contact us immediately if you disagree with any of their contents.The Confirmation will, in the absence of manifest error, otherwise be conclusive. Under clause 6.8 of the Client Agreement the time from which you must contact us begins from the time the Confirmation is posted on the Trading Platform, although we may also send the document to you electronically via email.
- 4.6 – Checking of statements
It is imperative that you check all the contents of the daily statements and monthly statements in detail and contact us within 3 Business Days if you disagree with any of the content of a daily or monthly report.These documents will, in the absence of manifest error, be conclusive unless you notify us in writing to the contrary within 3 Business Days of receiving them. Under clause 6.8 of the Client Agreement the 3 Business Days begins from the time the document is posted on the Trading Platform, although we may also send the document to you electronically via email.
The summary of your financial Position will provide you with your Margin Position, and indicate to you whether you are approaching your minimum Total Equity balance. It will also indicate the excess funds available, if any, that you may either use to open new Margin FX Contracts or CFD Positions or withdraw. It is very important that you remain aware of your daily Total Equity balance, your Total Margin Requirement for your open Position(s), and any Free Equity available.
- 4.7 – Errors in Pricing
It is possible that errors, omission or misquotes (Material Error) may occur in the pricing of Margin FX Contracts or CFDs quoted by us, which by fault of either of us or any third party, is materially incorrect when taking into account market conditions or quotes in Underlying Instruments which were provided at the time. A Material Error may include an incorrect price, date, time or Margin FX Contract or CFD, or any error or lack of clarity of any information or source or pronouncement.Furthermore, there may be circumstances where we reasonably believe that you have manipulated our prices, execution process on our Trading Platform.
In these circumstances, we may take action including voiding the Margin FX Contract or CFD from the outset. You are referred to clauses 9.10 and 9.11 of the Client Agreement for the Client Agreement for a full description of events and the actions we may take.
- 4.1 – Delivery of confirmations and statements electronically
FX LIQUIDITY PROVIDERS:
