What is margin adjustment?
Updated over a week ago

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).

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

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