IFX Markets enables foreign currency trading to be conducted on a highly leveraged basis. IFX employs a step margining system where margin levels are based upon the quantity of lots that make up each position. Margin levels begin to escalate from $100 per lot after positions surpass a 1,000 lot threshold. As position size increases from a range of 1,001 to 2,000 lots, the margin levels rise to $200.00 per lot for only those lots falling within this range. Lastly, all positions ranging from 2,001 lots and higher will have a $300 per lot margin level.
The chart below demonstrates the step margining system
LOT BASIS
MARGIN LEVELS
1 lot (10,000 base) to 1,000 lots (10,000,000)
$100 per lot
1,001 (10,010,000) to 2,000 lots (20,000,000)
$200 per lot
2,001 lots (20,010,000) & higher
$300 per lot
Overview of Step Margining
As stated above, IFX’s margin policies are implemented through a step margining system. Therefore, the system applies the margin levels to all positions in a step format, resulting in certain positions being margined at two or more levels.
For example, if you open a 1,200 lot position the system will apply a $100 per lot margin level for the first 1,000 lots of this position and a $200 per lot margin level for the remaining 200 lots. Additionally, if you open a position consisting of 2,500 lots, the first 1,000 lots will be margined at $100 per lot level, the next 1,000 lots will be margined at a $200 per lot level, and the remaining 500 lots will be margined at $300 per lot level.
It is important to note that the step margining system only affects positions over 1,000 lots. Thus, if your trading typically consists of less then 1,000 lots, the step margining system and its various margin levels outlined above will not affect your account.
Client Options
Clients can elect a more conservative leverage level by sending an email to info@cbfx.com, or by contacting our client service team at 1-617-357-0682. Pending approval, margin level adjustments can typically be completed within one business day.
Lot size is equal to 10,000 units of base currency
IFX Markets constantly monitors the leverage level of all accounts. IFX Markets makes no guarantees that we will contact clients whose accounts are near the minimum equity requirement for their open positions. Clients are fully responsible for monitoring the activity in their accounts.
In the event that an account exceeds its maximum allowable leverage, IFX Markets retains the right to liquidate all or a portion of the open positions in the account
IFX Markets Inc. Registered
with the CFTC, Member of National Futures Association, NFA ID: 0327627
