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What Are 'Margin Reserve Accounts' and Why Are They Required?

What are ‘Margin Reserve Accounts’?

Margin Reserve Accounts are accounts that do not have trading permission but are used to transfer additional equity so that your account can continue trading using higher leverage.

Why are ‘Margin Reserve Accounts’ required?

In order to meet our equity requirements on higher leverage accounts, Valutrades will create you a Margin Reserve Account to which you will be asked to move excess equity. You will need to move excess equity in order to keep trading on higher leverage.

 

What are the equity requirements for higher leverage?

In order to trade on higher leverage, you must have the following equity or less per higher leverage account:

  • If you have equity up to 50,000 USD equivalent, you may receive leverage of 500:1

  • If you have equity of 50,000 USD to 100,000 USD equivalent, you may receive leverage of 200:1

  • If you have equity of 100,000 USD equivalent and over, you may receive leverage of 100:1

How do I know how much to transfer across to my Margin Reserve Account?

You need to transfer the excess equity plus ten percent to your Margin Reserve Account, as per below:

  • Leverage 1:500 = excess is anything over Equity of 45,000 USD equivalent

  • Leverage 1:200 = excess is anything over Equity of 90,000 USD equivalent

Alternatively, you may withdraw any excess funds that breach our equity requirement.

 

Please be advised that we reserve the right to change leverage at our discretion if the Margin Reserve Account system is abused, or if you do not reduce your equity by withdrawal/transfer to the Margin Reserve Account.

 

If you have any questions about this topic please contact our support team by live chat, email (support@valutrades.com) or phone (+442031410888).