DEPOSIT PROCESSING LEVEL
(Based on risk management regulations of MXV and SFVN from time to time)
Initial Margin
• All contracts require a margin before trading. <> to view the list of margin levels.
• The initial margin level applied at MXV is 120% of the initial margin level at the foreign Commodity Exchanges with connections (except LME).
• This margin level will be calculated according to the exchange rate announced by MXV from time to time.
Required Margin
• Is the minimum margin amount required on the Commodity Trading Account to ensure trading obligations including opening and maintaining open positions.
• Required Margin = Initial Margin x Margin Factor
• Currently applicable MXV Margin Factor
o Corporate Clients: 1.0
o Individual Clients: 1.2
Maintenance margin
• This is the minimum margin that the Client must have on the commodity trading account to maintain an open position.
• If the net value of the trading account falls below the maintenance margin level, the Client will receive a Margin Call notification. The Client needs to add margin to the required margin level.
• Currently, MXV is applying a maintenance margin level of 100% of the required margin
Pending order cancellation level
• Currently, the cancellation level of pending orders of the trading account is equal to 70% of the total required margin.
• If this margin level is violated, all pending orders in the trading account will be canceled to ensure margin safety.
Position settlement level
• The mandatory position liquidation level of the trading account is 40% of the total required margin.
• In violation of this level, the client must replenish the margin within 30 minutes or the trading account will be subject to mandatory position liquidation.
