How is margin calculated for XAUUSD247?
XAUUSD247 uses Single-Sided Margin. When both Buy and Sell positions are open, the margin calculation is based on the larger directional position.
When both Buy and Sell positions are open:
- The larger position determines the total volume used for margin calculation.
- The hedged portion is calculated using VWAP.
- The unhedged portion is calculated using the applicable trade entry price.
Standard XAUUSD: Margin is calculated based on the unhedged portion.
- Example: 5 lots Long + 3 lots Short = 2 lots unhedged
- Margin is calculated on 2 lots.
XAUUSD247: Uses single-sided margin.
- The system considers only the larger position side.
- Any hedged portion is disregarded.
- Example: 5 lots Long + 3 lots Short = 5 lots considered
- Margin is calculated on the full 5 lots.
Key Difference: XAUUSD247 may require a higher margin than standard XAUUSD when a hedged position is involved.
What is VWAP for XAUUSD247?
VWAP means Volume-Weighted Average Price.
For XAUUSD247, VWAP is used to calculate the margin for the hedged portion of the position.
