Margin is the amount of collateral needed to cover any credit risks that might occur during your trading. The rate of margin is determined by Equity divided by the margin used. During high-risk market conditions, it is recommended that you either close off positions to free up liquidity or add additional funds to expand the liquidity available.
Margin is expressed as the percentage of position size (e.g. 1%), and the only real reason for having funds in your trading account is to ensure a sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000. The margin in your trading account needs to be above the margin call level for you to be able to open new trades unless the new trades will result in your trading account being fully hedged.
At CM Index you can control your real-time risk exposure by monitoring your used and free margin. Together, used and free margin forms your equity. Used margin refers to the amount of money you need to deposit to keep the trade (for example, if you set your account at a leverage of 100:1, the margin you need to set aside is 1% of your size). Free margin is the amount of money that you left in your trading account and fluctuates according to your portfolio equity; you can open new positions with it, or absorb any losses.
Margin is expressed as the percentage of position size (e.g. 1%), and the only real reason for having funds in your trading account is to ensure a sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000. The margin in your trading account needs to be above the margin call level in order for you to be able to open new trades unless the new trades will result in your trading account is fully hedged.
Using leverage means you can trade positions that are greater than the sum of money in your bank account. A sum of leverage is expressed as a ratio, for example, 50:1, 100:1, 200:1, 500:1, or 1000:1. If you have $1,000 in your trading account, and selling 500,000 USD / JPY unit of contract sizes, the leverage would be 500:1.
How will the sum you have at your disposal be tradeable 1000 times? You have a free short-term credit balance at CM Index if you transact on a margin: this helps you to buy an amount that exceeds your account value. Without this grant, you are only able to purchase or sell $1,000 units of contract sizes at a time.
On the one hand, you can make a substantial profit by using the leverage, even from a relatively small initial investment. On the other hand, if you fail to apply proper risk management, the losses can also get dramatic. That is why CM Index offers a leverage package that lets you select your desired level of risk.
CM Index shall monitor the leverage ratio applied to customer accounts at all times and retains the right to make adjustments to and amend the leverage ratio (i.e. decrease the leverage ratio), at its absolute discretion and without warning on a case-by-case basis, and/or on all or any customer accounts as CM Index considers to be necessary.
Leverage for your accounts depends on the type of account you are opening and the amount of equity in all of your accounts. Margin requirements do not change during the week, nor do they widen overnight or at weekends. Leverage change according to equity will be instant. We also have the right to change the client’s trading accounts leverage whenever necessary according to trading behavior, market condition, which will be informed or not be informed depending on conditions. Please bear in mind, that in some special cases, there will be trading accounts that are exempted from leverage changes depending on conditions.
*Terms & Conditions Applied.
Increase & decrease leverage according to equity.
1 – 5,000
5,001 – 10,000
10,001 – Above
10,001 – Above
If your account equity drops below 50% of the margin needed to retain your open positions, you need to be alert with the margin call level warning that you do not have enough equity to cover open positions. It is recommended that you either close off positions to free up liquidity or inject extra funds to increase the available liquidity.
The level of stop out relates to the level of equity at which the open positions automatically close. Our stop out level is at 30% of the margin. If you reach the stop out level, positions will start to be automatically close starting from the least profitable positions.
Although each client is entirely responsible for controlling their trading account operation, CM Index follows a policy of Negative Balance Protection to ensure that the overall potential risk does not surpass the account equity. In case your account equity goes negative, CM Index will cover the negative amount. Negative Balance Protection means that you can’t lose more than your deposited money, i.e. you won’t owe money to the broker.
1. Kindly note that the Negative Compensation Rules as the Negative Balance Protection program execute at the 51st minutes every hour server time, automatically. In case clients’ accounts got stopped out, and the clients want to redeposit again, kindly wait for the balance to reset automatically before making the deposit. In case you deposited without notifying us, the action is at the clients’ discretion and we are not responsible to give compensation for the negated amount.
2. Kindly note that the Negative Compensation Rules will automatically be triggered if your account balance has become negative, meaning that if you closed your account manually and the balance ends up negative without utilising all the credit bonus available, the Negative Compensation Rules will also be triggered and reset back your both your balance and credit to 0.
3. Please be aware that, our credit bonus do support floating positions and it provides extra margin. However, the credit bonus itself is not tradable. If you do want to fully utilise the bonus credit that we provide, do not close your floating positions manually. The bonus credit will act as an extra margin and support your floating position(s) until all of the bonus credit end up in 0 or reach the 30% Stop Out level.
4. In case your account has been only negative in balance, please do not do any deposit transaction. You may contact us, and please request for manual balance and credit reset, before you do any new deposit to your account.
Each client is entirely responsible for how they trade, either manual or automatically using Expert Advisor. However, under circumstances that any trading activity that we found may involve such as:-
1. Exploiting price via trade balance (eg: buy/sell stop order simultaneously during high impact news);
2. Hedging with different Metatrader accounts; (kindly note hedging is allowed within the same one Metatrader account only);
3. High-frequency trading that sends orders more than the max allowed or High-Frequency Trading that disrupts the server;
4. Expert Advisor that is manipulative or manipulating the bid and asks price latency;
5. Any directly or indirectly fraud activity or methods.
Any aforementioned activities will result in the termination of your account and per case basis review, we will return or refund back your initial or available capital while the profit resulting will be cancelled, case by a case basis.
|Asia||Tokyo / Hong Kong/ Singapore||24.00 – 08.00||00.00 – 09.00||JPY, HKD|
|United Kingdom / Europe||London / Frankfurt||07.00 – 16.00||08.00 – 17.00||CHF, EUR, GBP|
|America||New York / Chicago||12.00 – 21.00||13.00 – 22.00||CAD, USD|
|Pacific||Sydney||21.00 – 06.00||22.00 – 07.00||AUD, NZD|
For day traders the most active hours are between opening the London markets and closing the US markets. The peak trading time is when the US and London markets converge. Usually, these hours are when the largest amount of trades occur and are considered the most desirable in terms of trading opportunities.
The key sessions for traders are the markets in London, the US, and Asia. Between summer and winter months, market opening and closing times change, as many countries transition to/from daylight savings time (DST). Above in table is an overview of the trading sessions that will help you make the most of the market.
Time in MT4 is shown as Greenwich Mean Time (GMT+1) or (GMT+0). During Daylight Saving Time, our server time is at 1 hour forward of Greenwich Mean Time (GMT +1). The GMT+1 usually starts in March and ends in October or November of the same year. During Standard (Winter) Time, the server time is 0 hours ahead of GMT (GMT +0). The GMT+0 usually started in October or November and ends in March the next year.
In Greenwich Mean Time (GMT+0), the transition to Daylight-Saving Time takes place on the last Sunday of March at 01:00 GMT, moving the clock ahead an hour (GMT+1). The move back to Eastern European Standard Time takes place on the last Sunday in October or November at 1:00 GMT, moving the clock back an hour.
The GMT offset is either +0 or +1 depending on whether Daylight savings time is in effect or not, however, CM Index provides the accurate 5+1 daily candle week for all clients. 1 extra candle was for the Sunday Bar (ranging up to 2 hours only) opening time during wintertime at GMT+0. Kindly note that for some instruments, there are 2 trading sessions with a break in between sessions.
When the liquidity providers’ pricing in online CM Index switch (late Sunday, early Monday session start) and offline switch (Friday session end) the spreads can be wider as the liquidity providers reset and liquidity is low.
There is a daily break in trading depending on the type of instruments and platform time. Clients are able to see the prices streaming during this break. However, no orders can be placed and preexisting orders cannot be executed during this time.
Through our combination of the tier-1 bank, non-bank, and ECN & STP liquidity and execution liquidity and by maintaining fill ratios with our LP(s) and using ‘no last look’ execution when supported, we’re able to improve execution and reduce slippage for our traders.
Slippage generally occurs for 2 reasons:-
1. Either due to a delay between an action and its execution, or
2. Due to a lack of liquidity depth resulting in VWAP (volume-weighted average price) slippage.
CM Index is dedicated to ensuring minimal slippage for all of its clients.
Please notice that you can only keep up to 100 positions open simultaneously (per client and with pending orders included). The total lot-sizing restricted per ticket is 100 lots.
Should market gaps emerge from a Friday near a Sunday opening, CM Index will execute all pending limits or stop orders for the corresponding place size at the first market price available.
CM Index has been leading the implementation of no re-quotes and no denial of orders policy. We give 100% order execution with almost all our orders being executed lighting fast within seconds as fast as 3 miliseconds.
Thanks to its alertness and business alliances with numerous liquidity providers, CM Index aims to serve you best by executing orders at the best available market price, even during unpredictable market conditions.
The core aim of us here at CM Index is to provide low-cost access for traders to global markets through market-leading pricing and execution. By integrating tier-1 bank, non-bank, ECN & STP liquidity and execution, we can stream extremely tight spreads to traders and deep liquidity-reducing your trading costs.
Spreads from 0.1 pips refer to the capacity of a broker to sell a commodity with a 0.1 pips range. Normally this can only be achieved if a variety of requirements are met, including an aggregated price feed or ‘ECN’ feed and no spread floor in place, i.e. no minimum spread with ‘STP’ order execution.
CM Index passes on the prices it receives from its liquidity providers to traders. This means our spreads are variable and fluctuate in line with market liquidity and volatility.
The Markup on Spread & Commission Charges Rates
CM Index does add markups on spreads specifically on STP account types. However, for ECN account type, CM Index does not add any markup but charges a flat commission rate on all instruments.
CM Index understands that trading conditions should be adapted to individual trading needs. CM Index offers swap-free accounts, which implement no swap or rollover interest on overnight positions which is against the Islamic faith. Now with us, Muslim traders can take positions without being swap-charged, or credited an overnight interest.
No regular crediting / withdrawal of funds/losses associated with swap operations may occur on swap-free accounts. This will allow the client to earn no extra income and will not incur any additional losses. These swap-free accounts are automatically applied to all of our clients.
However, should it be found that any client has violated the “swap-free” privilege, CM Index shall maintain the rights to restore the privilege of all trading accounts of the client within its member region and charge swap. In this case, misuse is, but not restricted as well, a situation where a large portion of the transactions on the client’s trading account has a negative swap that CM Index does not charge, in compliance with the “swap-free” status.