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JAMESJAMES50


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WHAT IS YOUR MARGIN REQUIREMENT TRADING FOREX ON THE DAX AND THE DOW? WHAT DOES THIS MEAN?

SO WITH A £5,000 ACCOUNT WHAT WOULD BE THE MAXIMUM STAKE PER PIP FOR THE DAX AND DOW.

HOW MANY PIPS GO TO IG FOR EACH TRADE?

This information will help me to assess my strategy. THANK YOU.         GT.

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15 hours ago, JAMESJAMES50 said:

WHAT IS YOUR MARGIN REQUIREMENT TRADING FOREX ON THE DAX AND THE DOW? WHAT DOES THIS MEAN?

SO WITH A £5,000 ACCOUNT WHAT WOULD BE THE MAXIMUM STAKE PER PIP FOR THE DAX AND DOW.

HOW MANY PIPS GO TO IG FOR EACH TRADE?

This information will help me to assess my strategy. THANK YOU.         GT.

Hey, 

For the dax and dow you can find the margin requirement on the deal ticket under get info> Margin requirements: 

 

image.png

 

Something to take into consideration is the contract size. For example the normal contract for the DOW (Wall st) is $10, the mini is $2 and we offer a £1 contract due to people not liking their investment in dollars when they have a sterling account: 

image.png

 

If you are asking the max position you can take out you would use the calculation below (for the sterling £1 contract): (I will be using approximate pricing but please note the price will move) 

£5000 = price x contract size x amount of contracts x margin requirement 

£5000 = 34568 x £1 x amount of contracts x 5%

This gives you 2.89 meaning if you're trading full contracts you would be able to take out 2 contracts on the dow. Your margin required would be £3,456.80. The rest would be on your account for any potential losses. 

If you want a decimal contract you can have 2.8 meaning your margin will be (34568 x 2.8 x £1 x 5%)  £4,839.52. If you put £5,000 on your account this means you will have £60.48 left on your account for losses until you're on a margin call. 

 

If we were to use the wall st ($10) contract it's slightly different. 

You need to take the £5,000 and convert it at the current exchange rate. In interest of this example we will say the rate is 1.41

 

So £5,000 x 1.41 = $7,050. 

You will use the same calculation now as you did before however the contract size is larger so that needs to be factored into the equation

$7,050 = Price x contract size x amount of contracts x 5%

 

$7,050 = 34,568 x $10 x amount of contracts x 5%

Amount of contracts = $7,050 / 34,568 / $10 x 5% = 0.001

This wouldn't be possible as our contract sizes start at 0.2. 

 

I hope this helps if you need me to clarify anything else let me know by quoting my post :) 

All the best 

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