> Margin > Important Concepts

Important Concepts


Initial Margin Ratio

What is it?

It is the ratio of the client's capital to the total value of the portfolio (including margin) at the time of receiving the margin.

Ratio for (1:1) clients

At inception, the ratio is 50% of the total portfolio value.

Result

In case of profit, the client can transfer any profit which exceeds the initial capital

Maintenance Margin Ratio

What is it?

Is the ratio of the client's capital to the total value of the portfolio (including margin) that if reached, will lead to the reduction of the client’s buying power.

Ratio for (1:1) Clients

The maintenance margin begins once the ratio of the client’s capital to the total portfolio value reaches 40%.

Result

The Client’s buying power declines in proportion with the decline in the total value of the portfolio.

Margin Call Ratio

What is it?

When the ratio of the client's capital to the total portfolio value falls to 30%.

Ratio for (1:1) Clients

The maintenance margin begins once the ratio of the client’s capital to the total portfolio value reaches 40%.

Result

The Client’s buying power declines in proportion with the decline in the total value of the portfolio.

Liquidation Ratio

What is it?

The liquidation ratio is the ratio at which the client’s capital to the total portfolio value reaches a point where some or all of the client’s positions will be liquidated.

Ratio for (1:1) Clients

When the ratio of the client's capital to the total portfolio value falls to 25%.

Result

Some or all of the client’s positions are liquidated immediately without referring to the client.

 
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