Margin capacity
Margin indicates the level of leverage on
which a customer may execute transactions
and serves as a credit limit that he may not
exceed. On a 1% margin, an account containing
USD 50'000 theoretically has the capacity
to execute transactions up to USD 5'000'000.
In practice, customers should aim for a lower
margin utilisation. ACM offers 1% initial
margin on both standard and mini accounts.
As a service, ACM dealers will attempt to
contact customers accustomed to dealing by
telephone with the dealing desk whose open
positions are close to full margin capacity.
All customers are however fully responsible
for monitoring the activity on their accounts.
ACM is obliged to liquidate all open positions
on an account in the event that a negative
result on those positions causes the specified
1% margin level to be crossed.
The margin capacity ACM offers reflects our
willingness to provide the traders with the
level of risk they wish to adopt, we do
not however recommend trading with full
1% margin capacity as this engages a large
amount of risk. Ultimately the choice is left
to the trader to make transactions that meet
his/her appetite for risk.
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