Memo on the new rules of margin trading.

Dear Clients!

Not later than March 27, 2014, new margin trading rules come into force - Uniform requirements for the rules for brokering activities when making individual transactions at the expense of clients (hereinafter referred to as the Requirements), approved by Order of the FFMS -71 / pz-n. The following are the main changes that will occur for clients making unsecured transactions from this point forward.

1. Customer categorization

· CRMS - clients with a standard risk level (analogous to non-CRMS) - for them, the leverage will be the smallest of all 3 categories;

· KPUR - clients with an increased level of risk (similar to KPUR);

· Special risk category - all legal entities located on brokerage service in the bank. The amount of leverage, as well as the conditions under which the Bank closes positions on these clients, are established solely by the Bank. The requirements for this category do not apply. When the Bank launches a new margin lending procedure, requirements for a special category of customers will be posted on the website www. *****.

In order to be assigned a CRMS category, the client must meet one of the following conditions:

Ø The amount of cash and the value of the client's securities is at least three million rubles;

Ø Amount of money and cost valuable papers client is not less than rubles, and individual is a client of a broker (brokers) during the last 180 days preceding the day of making the said decision, of which at least five days at the expense of this person the broker (brokers) concluded contracts with securities or contracts that are derivative financial instruments;

Ø The client brought a confirmation of the assignment of the status of CPSD from another broker.

To calculate the value of the client's securities for its categorization, any securities admitted to trading on stock exchange, for which there were transactions for the last 30 days before the client was classified as a CRMS.

In contrast to the previous rules of margin trading, the CPUR category is assigned to the client once and is not subject to revision. Even if the above requirements are not followed in the future, the amount of leverage does not become equal to the amount of leverage for clients of the CRMS category.

Attention!!! On 27.03.2014, in accordance with the Requirements, categories will be assigned to all customers of the Bank. If the client was previously classified as CRMS, but as of March 26, 2014, his assets do not meet the requirements specified above, then he will be assigned the CRMS category.

2. List of margined securities

The requirements provide for the possibility of concluding margin transactions with any securities traded on the stock exchange. However, as before, the broker will establish its more limited list of liquid securities based on the requirements of risk management and disclose it on the website. Bonds will be added to the list.

3. Notifying a client about a margin call

Margin Call Notice No longer required by the Requirements. The Client will be obliged to independently track his position in Internet trading systems or in the Personal Account.

4. Calculation of the maximum leverage

There will be no more relative indicators of the margin level. To determine the maximum leverage for a client's position, 3 indicators will be calculated: portfolio value, initial margin and adjusted level initial margin. counts initial margin taking into account all applications submitted by the client and the application currently being submitted. These indicators are calculated as of days Т0, Т1, Т2 based on the balances of cash and securities on these days.

Portfolio value calculated according to the following formula: A – L, where

A - client's assets;

L - customer's debt.

Initial Marginrepresents the discounted valuation of the securities in the client's portfolio. Calculated using the following formula:

Initial Margin = CB1* Dn1 (long/ short) + CB2*Dn2 (long/ short)+…+CBn* Dnn( long/ short) , where

CBiis the value of the i-th securities in the client's portfolio. If a short position is opened on a security, then their modulo value is taken.

Dni(long) -the discount rate for a security if the client has a long position on it;

Dni( short) - The discount rate for a security if a client has a short position on it.

Discount rates for a particular security for the purposes of determining the initial margin are calculated according to different formulas depending on the categories of customers.

r - the risk rate determined by the exchange for a particular security. Please note that risk rates are variable parameters and are calculated by the National Clearing Center (NCC) every trading day. The current risk rates can be viewed on the NCC website at: http://www. *****/viewCatalog. do? menuKey=254.

It is forbidden to conclude a deal or withdraw funds/securities if, as a result of these actions, the value of the portfolio becomes less than the initial margin for at least one of the days T0, T1, T2!!! It is forbidden to submit an application for the conclusion of a transaction or for the withdrawal of funds / securities, if as a result of its submission the value of the portfolio becomes less than the adjusted level of the initial margin!!! At the same time, when submitting an order in the T0 trading mode, the value of the portfolio at T0 is compared with the index of the adjusted initial margin at T0. When submitting an order in the T2 trading mode, the value of the portfolio on T2 is compared with the indicator of the adjusted initial margin level on T2.

Example 1

Two clients, one of which belongs to the CRMS category, the other to the CRMS category, have in their portfolio cash in the amount of 1 million rubles.

A CRMS client, using the margin lending service, purchases ordinary shares of Gazprom at 100 rubles per share, a CRMS client purchases shares. Let's take the risk rate for calculations for Gazprom shares as 0.2.

Clients used the maximum possible leverage on the security with the lowest risk rate. When acquiring other securities in the portfolio, the leverage will only decrease. Clients are no longer eligible to make margin trades or withdraw funds on margin until portfolio value less than or equal initial margin.

The amount of leverage will depend on what securities are in the client's portfolio, since different discounts are used for calculating the initial margin for different securities.

5. Transferring a client's position

The mechanism for rolling over the positions of clients who have cash and/or securities debt to the Bank at the end of the trading day does not change. Positions will be rolled over by Special REPO deals.

6. Margin calculation when a client submits an order

When a client submits any application (including for the withdrawal of funds or securities), the indicator " adjusted initial margin level". This indicator calculates initial margin taking into account all applications submitted by the client and the application currently being submitted. If the specified indicator exceeds the value portfolio value client, the application will be rejected. analogues this indicator was not in the previous order. In the application form submitted through the Internet trading system, the client will see the indicator " available”, which will calculate the limit on the purchase / sale of securities depending on the entered price.

7. Withdrawing funds to margin

Withdrawal of funds to margin is possible, as before, until the maximum leverage is reached (until the indicator reaches " portfolio value» indicator « adjusted initial margin level»).

8. Closing a client's position

To determine the need to close the client's position, an additional indicator will be calculated "minimum margin". This indicator will be compared with the indicator portfolio value.

If a portfolio value fall below the minimum margin the broker is obliged to close part of the client's positions until the portfolio value becomes equal to initial margin. The broker has the right to carry out these actions at any time, starting from the specified event and until the end of the trading session. If a portfolio value falls below minimum margin three hours before the end of the trading session, the broker has the right to close part of the client's positions before the end of the next trading session.

Minimum Margin represents the discounted (at discounts other than the discounts used to calculate the initial margin) valuation of the securities in the client's portfolio. Calculated using the following formula:

Minimum Margin = CB1* Dm1 (long/ short) + CB2*Dm2 (long/ short)+ …+ CBn* Dmn( long/ short) , where

CBiis the value of the i-th securities in the client's portfolio. If a short position is opened on a security, then their modulo value is taken.

Dmi(long) -the discount rate for a security if the client has a long position on it;

Dmi( short) - The discount rate for a security if the client has a short position on it.

The evaluation of securities for the calculation of both indicators is carried out according to the last transaction on the stock exchange.

Discount rates for a particular security for the purposes of determining the minimum margin are calculated using different formulas depending on the categories of customers.

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Example 2

Continuing example 1, minimal margin for both clients will be

In the event of a decrease portfolio value below minimum margin the broker will close part of the client's positions to the level initial margin.

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9. Restriction on the possibility of opening short positions

As before, restrictions are set on the possibility of opening short positions. It is forbidden to open short positions on a security at a price that:

Ø 5 percent or more below the previous day's closing price;

Ø below the last current price;

Ø below the price of the last transaction;

10. View margin requirements through personal account

The indicators calculated for your securities portfolio in accordance with the new margin trading rules can be viewed in the demo version Personal account. Until 03/27/2014, the demo version will be available at the link: https://lk. *****/nm . To enter it in the form of entering a login and password, indicate them from your "Financial Markets Services" card.

Access to the Personal Account of the regular version is carried out using the old link https://lk. ***** .

After March 27, 2014, portfolio reflection in accordance with the new rules of margin trading will be available in the regular version of the Personal Account and in online trading systems Online Broker 4.0 and QUIK.

Click on the link to view the portfolio "Client Portfolio" In chapter "Trade"

Portfolio for days Т0, Т1, Т2 – The value of assets in the client's portfolio on days Т0, Т1, Т2 minus debt;

Money (current) for days T0, T1, T2 – funds on the account, taking into account transactions made in the current trading session;

MAC (Adequacy Level) on day T2:

Fund adequacy ratio (MAR) =font-size:12.0pt;font-family:" times new roman>If MAC>1, a Adjusted Margin more Portfolio– it is not allowed to send orders leading to an increase in its margin position;

If a MAC>1, a Adjusted Margin less Portfolio– it is allowed to send orders leading to an increase in its margin position;

If 0<UDS<1 – позиция клиента приближается к маржин-коллу и необходимо усилить контроль за позицией;

If a UDS<0 – по портфелю наступил маржин-колл, часть позиций будет закрыта.

Initial margin on T2 day – discounted valuation of securities in the client's portfolio;

Adjusted margin for T0, T1, T2 days – Adjusted level of initial margin for days T0, T1, T2, i.e. initial margin taking into account all submitted but unexecuted orders and the order currently being placed;

Discounts start. margins, Discounts min. margin – Discount rates for a security for the purposes of determining initial and minimum margins. Long - for the case when a long position is opened on a security. Short - for the case of a short position.

inbox – assets at the beginning of the trading day;

Current – assets, taking into account transactions made on the current trading day;

Minimum margin per day T2 – discounted (at discounts other than the discounts used to calculate the initial margin) valuation of securities in the client's portfolio (see paragraph 8 of this Instruction);

Available on days Т0, Т1, Т2 - the value of the client's portfolio minus the adjusted margin (cash available for withdrawal);

Shorts - the sum of the assessment of short positions at the current quote in monetary terms (number * lot size * price of the last transaction);

longs – the amount of evaluation of long positions at the current quote in monetary terms (number * lot size * price of the last transaction);

Money (incoming) for days T0, T1, T2 – funds on the account at the beginning of the trading day;

Requirement for day T2 – the minimum allowable amount of money by which it is necessary to replenish the trading account in order to avoid forced closing of positions.

Requirement = ABS([Portfolio] - [Min Margin]);

If Requirement<= 0, значение требования окрашивается красным;

If Requirement > 0 and Requirement = 0, no red coloring is performed.

Buy/Sell Limits – limits on the purchase/sale of securities at bid/ask prices, taking into account submitted but not executed orders ( taking into account the provision of margin leverage );

Position cost on days Т0, Т1, Т2 – evaluation of each position in securities in monetary terms;

Res. (1 CB) – financial result for the security, taking into account the weighted average price (last price of transactions in the trading system minus the weighted average price). For shorts, multiplied by -1.

N/real. – current income on unrealized securities in the portfolio (the average weighted purchase price for the portfolio is considered as the purchase price);

Realiz. – income received from securities sold in the portfolio (the average weighted purchase price for the portfolio is considered as the purchase price);

Total – total value N/real. and Realiz.

To use "leverage", you should simply submit an order to purchase securities for an amount that exceeds the balance of funds in your account. As a result of the transaction, you will have a long position in securities (“long”).

Long - Long position

At time "A" you bought shares at a price of 100 rubles. Some time later, at time point "B", you sold shares at a price of 110 rubles.

Income when buying only with your own funds: 10 rubles.

Income using margin lending: 60 rubles.

Buying with leverage allows you not only to increase speculative income, but also to buy securities at the right time. For example, the share price has dropped sharply, and has become attractive for investment. But at the moment you have less money in your account than you would like to buy shares. With the help of margin lending, you buy the security you need in the right amount, and then add funds to your account. To do this, you have a whole day, because the check of the sufficiency of funds for the execution of settlements on the transaction is carried out on the next day after the conclusion of the transaction.

As a result, you do not need to keep the full amount of money on your account in anticipation of an interesting price to buy a security. It is enough to provide only a part of the funds, and the rest of the money is provided to you as part of the Margin Lending service.

In effect, the risk rate is the discount at which a security is valued in margin lending. When buying a leveraged security, there is always a risk of a price decrease; when buying a short, there is always a risk of a price increase. The security risk rate takes into account the risk of unfavorable price changes and makes it possible to estimate the amount of risk that the Client can take on a particular security.

Risk rates reflect:

• Market volatility in general. The more volatile the market, the higher the risk of changes in the value of the security, and hence the higher the risk rate;
• Liquidity (volatility) of a particular security. It is known that large buy/sell orders have less effect on the prices of highly liquid securities than on the prices of low liquid ones. Therefore, the less liquid the security, the more volatile its price, and hence the higher the risk rate for such security.

Using the initial risk rate for a security, you can calculate the maximum leverage available to the Client in transactions with this security:

For example, the initial risk rate for a security is 50%. This means that the Client can make transactions with this security with a leverage of 1 to 1.

How are risks controlled when using leverage?

If you use margin lending, then you need to control the following:

• how the value of the portfolio and the size of the initial margin are related;
• how the value of the portfolio and the size of the minimum margin are related.

Portfolio value- is the value of liquid assets in the portfolio on the Client's account minus portfolio liabilities. Liquid assets include cash and liquid securities that are on the Client's account, as well as that may be credited to the Client's account as a result of the execution of concluded transactions. That is, the value of the portfolio is the value of the Client's own liquid assets on the account. Illiquid securities are not included in the calculation of the portfolio value.

Initial Margin allows you to assess the risk of opening new positions. Since the Client can only risk his own assets, the initial margin should not exceed the value of the portfolio. If the initial margin exceeds the value of the Client's portfolio, then:

• firstly, the Client cannot open new positions aimed at increasing the margin;
• secondly, the broker sends a notification to the Client that the value of the portfolio has become less than the initial margin.

Customer categories

* From March 27, 2014, all clients of BCS Company LLC are enabled by default with the Margin Lending service. If the client disables the "Margin lending" service, then the risk rates for all instruments for him are set at 100% - "leverage" becomes unavailable.

Margin lending rates

If the Client does not transfer the margin position (“short” or “long”) to the next day, but uses leverage only for intraday trading, then the “Margin Lending” service is provided FREE OF CHARGE.

When transferring a position to the next day, interest is charged according to the tariff plan. BCS Company LLC offers several types of tariffication for the Margin Lending service. The full terms of the tariff plans are contained in the Tariffs for Servicing on the Securities Market (Appendix 11 to).

The most convenient and profitable option for you will help you choose your financial advisor.

Lists of instruments for margin lending (lists of liquid securities and currency pairs)

Risk rates are rounded and may change if the risk rates calculated by the clearing organization change.

The exact risk rates are specified in the QUIK trading system.

Attention: The broker may exclude a security from the list of liquid securities. In this case, the value of the portfolio on the Client's account is calculated without taking into account the securities excluded from this list.

The List of Foreign Securities for Standard Risk Clients with Qualified Investor Status, the List of Foreign Securities for High Risk Clients with Qualified Investor Status, the List of Foreign Securities for Special Risk Clients with Qualified Investor Status, are determined for Clients - qualified investors classified by BCS Company LLC as the relevant category of clients (CRMS, CRMS, KOUR) in pursuance of the Directive of the Central Bank of the Russian Federation dated April 18, 2014 No. 3234-U “On uniform requirements for the rules for conducting brokerage activities when making transactions at the expense of customers” and the Agreement on Transactions with Partial Coverage of the Limited Liability Company “BrokerCreditService Company” (Appendix No. 7 to the Regulations) to a circle of persons, also to persons who are not qualified investors.

Documents LLC "Company BCS"

1. "Margin lending" - for the purposes of this material, a term that does not mean the provision of a loan or credit by the Broker to the Client, but means the provision by the Broker to its Client, subject to the necessary conditions, of the possibility of submitting and executing the Client's instructions to make transactions and / or operations under the Master Agreement that entail the occurrence of uncovered or a temporarily uncovered position in securities and cash, including foreign currency, as well as the execution by the Broker of transfer transactions of positions in accordance with the General Agreement, including the Regulations for the provision of services on the securities market of the BrokerCreditService Company Limited Liability Company (section 22.4. ), which is its integral part (hereinafter referred to as the Regulations), including the Agreement on Transactions with Partial Coverage (Appendix No. 7 to the Regulations) (hereinafter referred to as the Agreement).
2. Within the limits established by the Agreement.
3. Leverage (the indicator depends on the type of operation, as well as on the security) - the ratio of the value of assets that are missing to complete a certain transaction and the value of own assets that are available to the Client before the completion of this transaction or must be received by the Client.
4. Restrictions on transactions and transactions with securities, which may result in an uncovered or temporarily uncovered position in a security (“short”, “short position”).
5. Restrictions may be provided for by the General Agreement with the Client. Not intended for Clients - managing companies of mutual investment funds, non-state pension funds; management companies managing securities, Clients using trading and clearing accounts separate from other Clients of the broker.
6. The examples are presented without taking into account the Client’s expenses for the payment of remuneration and reimbursement of expenses to the Broker, depository, trading, clearing, settlement organizations and other third parties, for the payment of taxes, and without taking into account other expenses of the Client, including those associated with transfer/closing transactions of the Client’s positions, which reduce the Client's income from the use of "margin lending" and the lack of money to pay for which in full, free from any obligations in the Client's portfolio, may result in the Broker's transfer/closing of the Client's positions.
7. If such a ratio is permissible for the relevant issue of securities in accordance with the Agreement.
8. By making transfer transactions in accordance with section 22.4 of the Regulations and the Agreement, subject to the conditions stipulated by them.
9. As of 18:50 Moscow time, there are no temporarily uncovered positions in the Client's portfolio in terms of settlement terms for transactions on the current trading day and the next trading day.
10. The value of the indicator FXRatei (FXRatej) - the rate of the i-th foreign currency against the ruble (the rate of the j-th currency, in which the price of the i-th security is expressed, against the ruble), - used when calculating the indicators provided for by the agreement on transactions with incomplete coverage , which is Appendix No. 7 to the regulations for the provision of services in the securities market of the BrokerCreditService Company Limited Liability Company, including the value of the client's portfolio, the size of the initial margin, the size of the adjusted initial margin, the size of the minimum margin, the assessment of the client's portfolio of the ERM, the value of the initial the risk level of the ESD client, the value of the adjusted initial risk level of the ESD client, the value of the minimum risk level of the ESD client, - is determined based on the information on the latest exchange rate of the i-th (j-th) foreign currency (the price of the last transaction made at anonymous auctions) on the corresponding currency instrument "TOM" formed in the course of trading in the trading system of PJSC Moscow Exchange (currency market) on the current trading day. If on the specified date no trading in the relevant currency instrument in the trading system of PJSC Moscow Exchange (currency market) was conducted, the value of the FXRatei (FXRatej) indicator is determined based on the information on the latest exchange rate of the i-th (j-th) foreign currency for the corresponding currency instrument " TOM”, established on the nearest previous date of trading on such a currency instrument in the trading system of PJSC Moscow Exchange (foreign exchange market).

    The value of the indicator Pi,j - the price of one i-th security, - used in the calculation of the indicators provided for by the agreement on transactions with incomplete coverage, which is Appendix No. 7 to the regulations for the provision of services in the securities market of the BrokerCreditService Company Limited Liability Company, including, client portfolio value, initial margin, adjusted initial margin, minimum margin, ERM client portfolio value, ERM client initial risk value, ERM client adjusted initial risk value, ERM client minimum risk value is determined using information of the Russian trade organizer CJSC MICEX Stock Exchange, as well as foreign trade organizers: NYSE, NASDAQ, NYSE MKT, NYSE ARCA.

You can often hear how beginners make a critical mistake, not expecting to receive a margin call during their trading, or, as it is pronounced in Russian, a margin call. The result of not knowing what it is usually becomes a merged account in the Forex, stock or derivatives market. Getting the basic knowledge of the world of finance, which creates a solid foundation for success, will help to avoid an unpleasant situation.

Without an integrated approach to gaining knowledge, the fate of a trader will be sealed. This is especially painful if borrowed money, investor capital in PAMM accounts, and so on, were used to replenish the deposit. Therefore, we will continue to study the materiel, finding out what a margin call is and how to prevent its occurrence.

Types of lack of funds on deposit

Touching upon the topic of a margin call, it is definitely worth briefly mentioning the stop out along with it, although there is a separate article for this last one that reveals all the nuances. So let's get started.

To begin with, let us recall that financial speculative activities are carried out by traders using the margin trading system. That is, the broker provides its clients with leverage, which allows them to turn large capital with a small deposit, receiving decent profits from this. For Forex, the standard leverage is 1:100, and more aggressive trading with the help of trading advisors even allows the bar to reach 1:500 or even 1:1000.

For the stock and futures markets, such sizes are unusual, since you rarely see more than 1:20 there. But the bottom line in all cases is that the trader trades on the borrowed capital of the broker. With such a mechanism, the intermediary needs guarantees. Therefore, by providing a loan, the broker freezes part of the funds on the client's account, which act as a guarantee for opening a position.

Further, this amount of frozen capital may vary depending on the trading conditions of the broker and the situation on the market. For example, if a position incurs losses, then the broker, in order to protect his interests, will require a larger amount from the trader to ensure the current transaction. In this regard, every experienced trader, when calculating the volume of a transaction, always makes sure that in the event of an unsuccessful development of events, he has enough money in his account to maintain the position.

If there is not enough money, then the so-called Margin Call comes. But more about it later. In the meantime, let's give an example of how it is displayed in the popular MetaTrader 4 (MT4) terminal and its newer version 5, since they are used by the vast majority of all Forex traders.

So, open the terminal, make a deal and pay attention to the lowest tab "Trading" (Trading), which looks like this.

Here, in the line highlighted in gray, there are several parameters that you need to consider when working on the Forex currency market:

1. The first parameter, Balance, shows the general state of the account and the amount of funds available, accumulated by replenishing the deposit and fixing profits.
2. Next comes the Equity parameter, which shows how the Balance changes during an open transaction - if there is a profit on the current position or positions, then its size is summed up with the balance and displayed as a single number, but in case of current losses, their value is subtracted from the balance amount, showing the trader the real state of affairs on the deposit.
3. The Margin value gives the trader information about how much of the balance is "frozen" and cannot be spent on securing new trades.
4. The Free Margin parameter, in contrast to the previous one, says how much money from the deposit can be used in order to open new transactions.
5. And the last value Level (Level) Margin Call gives an idea of ​​how much free margin the trader has available, but this parameter is displayed as a percentage. This makes it easy to assess how strong the current load on the deposit is. Reading this value is simple - the larger it is, the better.

The level or Level the trader must constantly monitor in his trading, since at certain values ​​it is precisely the Margin Call and Stop Out that occurs. Here you need, first of all, to know how the margin call is calculated at the broker, which we will talk about below.

What is margin in the foreign exchange market

It should be noted that the English term margin call has not only the Russian equivalent of margin call. Often there is just an abbreviated name - margin, and sometimes they jokingly add - kohl. So, having met somewhere on the forum a message that Margin Kolya came to visit the trader, you need to understand it this way - the deposit was under attack due to an unsuccessful transaction.

Now let's consider what a margin call is, how it differs from a stop out, and what results it can lead to. Previously, transactions on the stock exchange and futures market were made by phone. The trader called his broker and asked him to buy/sell the required asset at a certain price. In turn, the broker monitored the positions of traders, as he lent them money as part of margin trading. And if there was not enough money on the account to secure the position, then in this case the broker called (call) the client and said that the margin level needs to be raised - that is, it is necessary to put more money on the deposit. This is where the term in question came from.

Unlike a margin call, which acts as a warning and recommendation, a stop-out is a forced closing of positions by the broker if the trader has not added funds or deposited them in insufficient quantities. It is important to understand that the broker will never risk his capital in order to satisfy the interests of the trader, therefore, as soon as the Free Margin level drops to critical values, a margin call will immediately follow, and then, if there is no reaction, a stop out.

The described scheme is still working on real stock markets, futures markets, and so on. In Forex with high leverage, the difference between a margin call and a stop out is usually very small in time, so usually these two events happen almost simultaneously. In such conditions, the broker practically does not have time to warn the client and receive money from him, therefore it is extremely important to correctly allocate capital, set stops and control the situation on the Forex market on your own.

Pay attention to margin levels when opening an account

Different brokers can have completely different Level values ​​on separate accounts. Therefore, you always need to know when the margin call comes, and then the stop out. These values ​​are important to study, compare and take into account in your trading, especially if it allows for large drawdowns, such as when using grid Expert Advisors.

Below is a table with stop out and margin calls levels for popular Forex brokers. Having studied it, it is easy to see how much the trading conditions differ in places.

Analyzing the table, the trader should understand that the lower the level, the better, since the account can, in which case, withstand a large drawdown without dangerous consequences.

In addition, you can see that Alpari and GKFX do not have a margin call level at all. These brokers believe that this phenomenon among Forex traders is an anachronism that needs to be eliminated. It is enough to leave only the stop-out level in order to know at what load on the deposit the broker will forcibly close the trader's positions.

By the way, today each speculator can independently set some specific level in the terminal, at which he will receive a notification that the drawdown on his account reaches critical values. Actually, experienced traders do just that, especially since now you can even set up receiving danger alerts on your phone or email.

Stock market and margin

For stock markets, it is important to know at what MAC a margin call occurs. In this case, UDS - the level of sufficiency of funds. This indicator is calculated as follows: The minimum margin is subtracted from the portfolio value, after which the resulting value is divided by the difference between the initial margin and the minimum.

In this case, it turns out that when the MAC is less than one, a margin call occurs, and when the MAC is less than zero, a stop-out occurs with the forced completion of all open deals. A similar algorithm is used, in particular, in the Quick terminal, which is popular among Russian traders.

Understanding now what a margin call is in the stock market and Forex, the trader has filled in another important gap in the basic knowledge that should serve as an unshakable basis for his activities.

"Margin lending" - for the purposes of this material, a term that means not the provision by the Broker to the Client of funds or securities as a loan, but the provision by the Broker to its Client (subject to the necessary conditions) of the possibility of submitting and executing the Client's instructions for making transactions and / or under the Brokerage Agreement transactions entailing the emergence of an uncovered or temporarily uncovered position in securities and cash and the execution by the Broker of transfer transactions of positions in accordance with the Brokerage Agreement and the terms of the Agreement on transactions with incomplete coverage.

As part of the Margin Lending service, we offer you:

• take advantage of "shoulder" - open a position several times greater than the size of your own assets;
• use a wide range of securities for margin trading;
• control the current limits (restrictions) for opening short positions on securities in the QUIK trading system on-line.

Changes since March 27, 2014:

• 1. The amount of leverage is set not for the Client's account as a whole, but for individual securities.
• 2. Now, by default, all Clients are connected to the Margin Lending service. If you do not want to use the service, it can be disabled upon written request.
• 3. The circle of Clients, which the Broker can refer to the category of Clients with an increased level of risk, has expanded.
• 4. A category of Clients with a special level of risk has appeared.
• 5. The lists of securities with which transactions with incomplete coverage are allowed have been expanded.
• 6. A short position ("short") on a security is allowed if its price has decreased by no more than 5% from the closing price of the previous day (before 03/27/14 it was 3%).
• 7. The planned position (portfolio value) is also calculated for transactions with a maturity of more than 2 days. Until March 27, 2014, the planned position was calculated only for deals with a term not exceeding Т+2.

How you can use margin lending

An example of buying securities with a leverage of 1:5:

You have 1000 rubles. Using "leverage" 1:5, you can buy shares in the amount of 6,000 rubles: you pay for shares in the amount of 1,000 rubles with your own funds, and the rest - using "leverage": you are provided with 5,000 rubles of additional funds. To use "leverage", you should simply submit an order to purchase securities for an amount that exceeds the balance of funds in your account. As a result of the transaction, you will have a long position in securities (“long”).

Long position (Long)

If you bought 1 share at a price of 100 rubles using only your own funds, and after some time sold this share at a price of 110 rubles, then your income will be 10 rubles.

If you use the “Margin Lending” service, using a “leverage” of 1:5, then you can buy 6 shares for 100 rubles of your own funds and 500 rubles of additional funds. After some time, by selling these shares at a price of 110 rubles, you will receive income 60 rubles.

Buying with leverage allows you not only to increase speculative income, but also to buy securities at the right time. For example, the share price has dropped sharply, and has become attractive for investment. But at the moment you have less money in your account than you would like to buy shares. With the help of margin lending, you buy the security you need in the right amount, and then add funds to your account. To do this, you have a whole day, because the check of the sufficiency of funds for the execution of settlements on the transaction is carried out on the next day after the conclusion of the transaction.

As a result, you do not need to keep the full amount of money on your account in anticipation of an interesting price to buy a security. It is enough to provide only a part of the funds, and the rest of the money is provided to you as part of the Margin Lending service.

An example of selling short (“short”) with a leverage of 1:5:

You have 100 rubles. You have a "leverage" of 1:5. This means that for transactions you are provided with additional assets in the amount of 500 rubles.

Short position (Short)

You were sold short (borrowed) 1 share at a price of 100 rubles. After some time, you bought back 1 share at a price of 90 rubles and closed the "short", i.e. returned the borrowed share. Income from the use of borrowed assets (1 share) with a leverage of 1:1 (100 rubles of own funds accounted for 1 borrowed share at a price of 100 rubles) amounted to 10 rubles.

The risk of using a "short" with a "shoulder" of 1:1 on short time intervals is comparable to the risk of buying shares with your own funds.

If you used the 1:5 leverage set for you, i.e. you borrowed and sold 5 shares at 100 rubles each, and after a while you bought back 5 shares at a price of 90 rubles, then your income using margin lending would be 50 rubles.

Thus, "short" allows you to make money in a falling market when securities quotes are declining.

What leverage is available for margin trading

"Leverage" shows how the additional assets that are available under margin lending correlate with the Client's own assets. The amount of "shoulder" for each security is different, and it depends on the risk rate for this security. Risk rates are calculated by clearing organizations.

Rounded risk rates are shown in the listings of securities (see ). Information about the exact size of bets is contained in the QUIK trading system (version 6.11.2.5 or higher).

In effect, the risk rate is the discount at which a security is valued in margin lending. When buying a leveraged security, there is always a risk of a price decrease; when buying a short, there is always a risk of a price increase. The security risk rate takes into account the risk of unfavorable price changes and allows assessing the amount of risk that the Client can take on a particular security.

Risk rates reflect:

• overall market volatility. The more volatile the market, the higher the risk of changes in the value of the security, and hence the higher the risk rate;
• liquidity (volatility) of a particular security. It is known that large buy/sell orders have less effect on the prices of highly liquid securities than on the prices of low liquid ones. Therefore, the less liquid the security, the more volatile its price, and hence the higher the risk rate for such security.

Using the initial risk rate for a security, you can calculate the maximum leverage available to the Client in transactions with this security:

For example, the initial risk rate for a security is 50%. This means that the Client can make transactions with this security with a leverage of 1 to 1.

How risks are controlled when using "leverage"

If you use margin lending, then you need to control the following:

• how the value of the portfolio and the size of the initial margin are related;
• how the value of the portfolio and the size of the minimum margin are related.

Portfolio value- is the value of liquid assets in the portfolio on the Client's account minus portfolio liabilities. Liquid assets include cash and liquid securities that are on the Client's account, as well as that may be credited to the Client's account as a result of the execution of concluded transactions. That is, the value of the portfolio is the value of the Client's own liquid assets on the account. Illiquid securities are not included in the calculation of the portfolio value.

Initial Margin allows you to assess the risk of opening new positions. Since the Client can only risk his own assets, the initial margin should not exceed the value of the portfolio. If the initial margin exceeds the value of the Client's portfolio, then:

• firstly, the Client cannot open new positions aimed at increasing the margin;
• secondly, the broker sends a notification to the Client that the value of the portfolio has become less than the initial margin.

If the Portfolio Value is less than the Initial Margin, the Client cannot open new positions.

Minimum Margin allows you to assess the risk of holding open positions.

The minimum margin must be less than the value of the portfolio. If the minimum margin exceeds the value of the portfolio, then the Broker is obliged to forcibly reduce a part of the Client's positions to an amount at which the value of the portfolio will not be less than the initial margin for the portfolio.

If the Portfolio Value drops below the minimum margin, the Broker will be forced to forcibly reduce the Client's position.

To avoid the risk of forced reduction of positions, the Client can do the following:

• either close some of the positions on their own and thereby reduce the size of the initial margin;
• or add liquid assets to your account: cash or liquid securities and thereby increase the value of the portfolio.

Categories of Clients

• total assets of 600 thousand rubles or more;
• has been a client of the Broker (or a client of another Broker) for the last 180 days;
• during the last 180 days, made transactions with securities or derivative financial instruments for at least 5 days

For each category of Clients, separate levels of risk rates are set:

* From March 27, 2014, all Clients of IC InstaVector LLC are enabled by default with the Margin Lending service. If the Client disables the "Margin lending" service, then the risk rates for all instruments are set at 100% for him - "leverage" becomes unavailable.

Margin lending rates

If the Client does not carry over the margin position (“short” or “long”) to the next day, but uses leverage only for intraday trading, i.e. As of 18:50 Moscow time, there are no temporarily uncovered positions in the Client's portfolio in terms of settlement terms for transactions on the current trading day and the next trading day, the Margin Lending service is provided FREE OF CHARGE.

When transferring a position to the next day, interest is charged according to the tariff plan.

On March 27, 2014, the BCS Company switches to compliance with the requirements of the Order of the Federal Financial Markets Service of August 8, 2013 N 13-71/pz-n ON UNIFIED REQUIREMENTS FOR THE RULES OF CARRYING OUT BROKERAGE ACTIVITIES WHEN CONCLUDING INDIVIDUAL TRANSACTIONS AT THE EXPENSE OF CLIENTS (hereinafter referred to as the Order).

Below are the main innovations that appear as a result of the implementation of the requirements of this Order.

The changes that will take place on March 27, 2014 can be summarized in the following main points:

Moving from the same leverage for all leveraged securities to determining the purchasing power separately for each security, based on risk rates.

Changing the used risk parameters.

Risk Rates

The risk rates that BCS may apply to its clients are calculated by clearing organizations and published on the Internet. If more than one risk rate is calculated for a security, BCS Company, in accordance with the Regulations, may apply any of them.

The list of securities with which BCS provides the opportunity to work with incomplete coverage, and the applicable risk rates, is disclosed on the company's website.

Please note that the publication of the list of securities and rates in accordance with the new rules will begin on March 26, 2014.

The order identifies the following categories of risk that can be assigned to clients by a broker:

1) standard level of risk;
2) increased level of risk;
3) a special level of risk.

Individual may be classified as standard or elevated risk. To increased level of risk a client - an individual can be attributed in the following cases:

The value of the client's portfolio exceeds 3,000,000 rubles.

The value of the client's portfolio exceeds 600,000 rubles, while an individual has been a client of the broker for the last 180 days, of which at least five days the broker has entered into transactions with securities or derivative financial instruments at the expense of this person.

Legal entities, in accordance with the Order, are classified by BCS as a special level of risk.

If the Client cannot be attributed to a special or increased level of risk, he is assigned standard risk level.

Risk parameters used

The main risk parameters used are client portfolio value, initial and minimum margin. The calculation of these indicators depends on the risk rate applied by the Company for this security and the level of risk assigned to the client.

D = risk rate calculated by the clearing organization and applied by the BCS Company.

Meaning initial margin calculated on the basis of the initial risk rate, determined by formulas depending on the level of risk of the client.

Meaning minimum margin is calculated based on the respective initial risk rate, which is the same for all risk categories of clients.

. Coefficient k for special risk is set by BCS Company.

For all the specified risk categories, if the Company's client refuses to work with incomplete coverage, the initial and minimum risk rates are set at 100%, the opportunity to open short positions is not provided.

An important difference introduced by the new Order is calculation of indicators for the planned item, which takes into account transactions with all maturities. The mechanism of operation of the new risk parameters "initial margin" and "minimum margin" consists in their calculation and constant comparison with the "Portfolio value" indicator. Further, depending on the values ​​taken by these indicators, the amount of risk in the portfolio is assessed and the need for certain actions to maintain the required levels of indicators is determined.

The values ​​of the indicators "Initial Margin", "Minimum Margin" and "Portfolio Value" are calculated in ruble terms.

An example of calculating risk rates depending on the rate disclosed by the clearing organization and applied by the BCS Company

How order requirements will look in the QUIK trading system

First of all, you need to update the QUIK version to the latest version (currently version 6.12.0.31 is recommended, it is the one posted on the site for download). To update the QUIK version, you need to run QUIK (for Windows 7 and 8 - run QUIK as an administrator, for which you need to right-click on the QUIK shortcut and select "Run as administrator"), go to Communication - Update the program version, "Yes" , click Accept Files. When QUIK needs to restart the program, agree.

To correctly display risk parameters, you first need to set up the Client Portfolio table. With the transition to the requirements of the new Order, a number of old indicators in the client's portfolio have lost their meaning (margin level, current leverage, available limit), and they should be removed. Others (shoulder) have changed their meaning and are used differently.

You need to add the following parameters:

portfolio value,
. Initial margin,
. Min. Margin,
. Speed ​​Margin,
. Status,
. Requirement,
. UDS.

To do this, right-click on the "Client Portfolio" table, select "Edit Table" and add the required parameters listed above one by one by highlighting the parameter and clicking the "Add" button. After adding the parameters, click "Yes".

Let's look at how the new indicators and their values ​​look in the "Client Portfolio" table.

This example shows a client with a standard level of risk. From the "Client Portfolio" table, by double-clicking on it, you can open the "Buy / Sell" table, in which, by setting filters, you can see the established risk rates depending on the risk level of the client and the security. Risk rates can be displayed both exclusively for available securities, and for all securities available for work with incomplete coverage.

Meaning of fields in tables

Let's add one more client to the client portfolio with leverage = 2, which corresponds to the CRMS.

In this example, two clients are shown with the same assets, but different levels of risk, set by "Leverage". The risk rates are reflected in the Buy/Sell table, their value can be checked using the calculation table. The example shows how the risk rate affects the value of the "Initial Margin" and "Minimum Margin" indicators. CRMS requires less collateral to open a position, which allows such a client to open a larger uncovered position than is possible for CRMS.

The following example also shows the difference in collateral requirements for clients with different levels of risk (CRMS and CRMS) , as well as the behavior of the Status, Claim and MAC indicators with a different ratio between the portfolio value and the initial and minimum margin values.

Examples of purchasing power calculation:

1. You have only DS on your brokerage account (300,000 rubles), depending on the risk category of CRMS/CRMS, you need to find the Initial Margin rate for the security you are interested in and the type of long/short operation. For example, for Gazprom shares they are equal to CRSD - 0.12/0.12 and for CRMS - 0.2256/0.2544. Since at the time of the transaction, the value of the Portfolio cannot be less than the Initial Margin, the maximum long/short size in rubles is calculated as follows:

CRSD: 300,000/0.12=2,500,000 rubles to buy Gazprom with leverage;
300,000/0.12=2,500,000 rubles for a short position in Gazprom.

KSUP: 300,000/0.2256=1329787 rubles to buy Gazprom with leverage;
300,000/0.2544=1,179,245 rubles for a short position in Gazprom.

2. If there are only securities on the brokerage account, then discounting their value according to the Initial Margin rates must be added to the calculation from point one. For example, you are a CPSD. On your brokerage account DS=0 and there are 1000 shares of Gazprom with a current price of 125 rubles. The Initial margin rate is 0.12, therefore, the maximum available for you to buy Gazprom shares with leverage is:
/0.12=916667 rubles.

The remaining options for calculating purchasing power will be a combination of examples 1 and 2.

Example of calculating forced close levels:

If the value of the Portfolio becomes less than the Minimum Margin, the broker performs forced closing to the level when the value of the Portfolio exceeds the level of the Initial Margin. For example, there were 300,000 rubles in the brokerage account, a transaction was made to purchase 4,000 Gazprom shares at 125 rubles, and the debt is 200,000 rubles. In this case, the Margincall level is calculated as follows:

CRSD:
X is the price below which a forced close occurs
0.0619*4000*X is the minimum margin

Margincall happens if 0.0619*4000*X< 4000*Х - 200 000 или Х= 53,30 рублей

CRMS:
0.12*4000*X is the minimum margin
4000*X - 200,000 is the value of the Portfolio
Margincall happens if 0.12*4000*X< 4000*Х - 200 000 или Х= 56.82 рублей

ATTENTION: On March 20, 2014, an Internet conference was held on the BCS Express website, dedicated to the upcoming changes after March 27. We strongly recommend that you take 5-10 minutes of your time to familiarize yourself with .

You can also attend the free webinar "New Requirements for Margin Trading: Features and Opportunities" on Wednesday, March 26th.

Best regards, BCS Broker