Coming Soon: Changes to Minimum Price Increments, Lot Size, Base Initial Margin and Maintenance Margin

Minimum Price Increments

On 21 Nov 2024 at 04:00 UTC, the Minimum Price Increments for the following contracts will be reduced as shown below.

The Minimum Price Increment (Tick Size) is the smallest increment by which the price of a contract can move. 

A smaller Minimum Price Increment can theoretically lead to reduced bid-offer spreads, useful for price takers when crossing the spread to trade.

Lot Size

On 21 Nov 2024 at 04:00 UTC, the Lot Sizes for the following contracts will be reduced as shown below.

The Lot Size is an instrument’s minimum trading unit (as number of contracts).

A smaller Lot Size means that traders can place orders with a smaller position size increment and participate in trading these contracts with smaller capital requirements.

Base Initial Margin, Maintenance Margin and Risk Limits (Leverage)

On 21 Nov 2024 at 04:00 UTC, the Base Initial Margin, Maintenance Margin requirements and Base Risk Limits and Risk Step for the following contracts will be changed as shown below.

These changes will apply to new positions, new orders and any leverage or Risk Limit changes, applied to existing positions or existing orders. The current Margin requirements for our products can be found here. 

Impact of changes to Base Initial Margin and Maintenance Margin under all Risk Limits (for the above contracts):

• Initial Margin requirements will decrease, so Bankruptcy Price will move closer to Average Entry Price and Maximum Leverage available will increase.
• Maintenance Margin requirements will decrease, so Liquidation Price will move closer to Bankruptcy Price and the amount of Maintenance Margin lost in the event of liquidation, will decrease.
• The difference between Initial Margin and Maintenance Margin will decrease, so Liquidation Price will move closer to Average Entry Price.

In the meantime, if you have any questions please contact Support.

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