Margin Adjustment is charged only when the Client Trading Account’s currency is different from the underlying asset's quoted currency. Margin Adjustment is set at a maximum of 0.3% (applicable to the Libertex platform only).
Please refer to the example in the Specifics of Trading Operations Execution in Libertex Trading Platform.
For MT4 please refer to the example in the Specifics of Trading Operations in MT4 Trading Platform.
For MT5 please refer to the example in the Specifics of Trading Operations in MT5 Trading Platform.
For example:
You want to buy long 1000 (100*10 multiplier) EURUSD, which is quoted in US dollars, while your account is denominated in Euros.
EURUSD rate at opening: 1.11500
EURUSD rate at closing: 1.12500
If:
The margin requirement is 3.333%
The margin adjustment is 0.3%
Used Margin: volume * margin requirement = 100 * 10 * 3.333% = 33.33 EUR
Margin Adjustment when opening the position:
Margin Used * Margin Adjustment Fee = 33.33 * 0.3% = - 0.10 EUR
Commission for opening the position: 100 * 10 * 0.010% 1= 0.10 EUR
Margin Adjustment when closing the position:
Margin Used * Margin Adjustment Fee = 33.33 * 0.3% = - 0.10 EUR
Total Margin Adjustment: (-0.10) + (-0.10) = -0.20 EUR
Closed P/L: ((Closing Price/Opening Price - 1) * volume) - Commission for opening = ((1.12500/1.11500 - 1) * 1000) – 0.10 = 8.87 EUR
Closed P/L after margin adjustment: closed P/L + margin adjustment = 8.87 + (- 0.20) = 8.67 EUR