When you open a position, you will see that we reserve a certain amount of Cash from your account = this is the so-called 'ring fenced amount'.

 

Its sole function is to make sure there is always enough Cash on your account to cover trading & financing fees for your open positions and makes sure that your account will never be negative. 

 

The amount that we reserve is always 5% of the total account value (invested amount + Cash).

 

The minimum ring fenced amount is €5. 

 

This measure is also only temporary. Once you've closed all your positions, the ring fenced amount will be available to withdraw.

 

Check out this example:

  • Say, you deposit €100 in your account. The moment you make a trade, your ring fenced amount will be (5% of 100) €5. 
  • If you invest €70 and the value of your investment grows to €80, your ring fenced amount will stay the same. 
  • However, once you close your investment, your total account value would increase by €10, taking your account value to €110. If you make a new trade, your ring fenced amount will be 5% of 110 = €5.50.

 

Graphical user interface, application Description automatically generated

 

 

Questions? Contact us.