Margin Trading


Placing Orders

You may place buy and sell orders of various types (see order types above)

When placing an order you specify:

  • Order Instrument and Direction (Long / Short)
  • Order Amount is usually measured in base asset units of the Order, I.e. 1 BTCUSD is buy 1 BTC and sell corresponding amount of USD

When a trader places a buy or sell order, before he/she is allowed to submit the order the system will check that he/she has enough Free Margin available to reserve the Initial Margin.

Margin and Profit & Loss (PnL)

Before you are able to trade you first must deposit some assets to fund your margin account. The asset needed depends on the margin account nominal currency, which is seen in account name. For instance for “Lykke Vanuatu BTC” account you would use Bitcoins.

All PnL settlements and margin requirement calculations are done in your account nominal currency

The following are important rules regarding Margin Requirements

  • To evaluate the margin requirements we calculate [Value Of Order] = [Order Amount] * [Order Base Asset to Account Nominal Currency exchange rate], i.e. how much the order amount is worth in nominal currency of your account
  • For Buy and Sell orders the Initial Margin = [Value of Order] / [Initial Leverage].
  • For all positions the Maintenance Required Margin = SumForAllPosition ([Value of Order] / [Maintenance Leverage] ).
  • Used Margin equals Maintenance Required Margin.
  • To avoid liquidation on your position you should maintain your margin account Total Balance > 100% of Maintenance Required Margin. If a trader violates this condition he is notified by email and in app notification, which is called Margin Call.
  • The position will be liquidated immediately if Total Balance becomes < 50% of Maintenance Required Margin.
  • Total Balance is Balance plus unrealised PnL from all open positions. It is also often called Equity.
  • Balance is your Deposits less your Withdrawals plus realised PnL from positions.
  • Free Margin is Total Balance less Used Margin is the margin available to open new positions.

Lykke Vanuatu reserves the right to change any margin policies. Lykke Vanuatu will notify traders of any change via email announcements.

Position funding

All open positions on Lykke are subject to funding.

Funding is calculated based on open position duration measured up to seconds accuracy and based on corresponding annual swap rate (see instruments list above).

Funding is taken into account in position PnL each second.

Trading conditions

Account

  • Nominal currency is Bitcoins, i.e. the collateral deposit is made in BTC as well as PnL settlements.
  • Cash in and Cash out through Lykke UK Wallet with zero commission.
  • Cash outs may be delayed up to 24 hours for security reasons.
  • Maximum deposit 1 BTC (limit will be gradually increased over time).
  • Margin Call: 100% Equity to Maintenance Margin Requirement ratio.
  • Stop Out: 50% Equity to Maintenance Margin Requirement ratio.
  • Trading terminal: Lykke Wallet Mobile App, iOS and Android.
  • Web terminal is coming soon.

Crypto trading

  • BTCUSD
  • Maintenance Leverage: 3 to 1
  • Initial Leverage: 3 to 1
  • Maximum order size: 3 BTC
  • Maximum position size: 3 BTC
  • Swap rate for LONG positions is 91.25% annual rate charged rounded up to seconds level, for SHORT positions 91.25% similarly.
  • Execution commission is 0%
  • Trading schedule: 24/7. There may be scheduled maintenance interruptions on weekends announced in advance.

Fiat Trading

  • Pairs with USD, CHF, EUR, GBP, JPY, see the full list for details below.
  • Maintenance Leverage: 200 to 1
  • Initial Leverage: 200 to 1
  • Maximum order size: 200’000 USD/CHF/EUR/GBP, 20’000’000JPY
  • Maximum position size: 200’000 USD/CHF/EUR/GBP, 20’000’000JPY
  • Swap rate for LONG positions is < 2% annual rate charged rounded up to seconds level, for SHORT positions <2% similarly.
  • Execution commission is 0%
  • Trading schedule: 22:05 GMT Sunday - 20:55 GMT Friday
  • Pending Orders are unavailable 55 minutes prior trade closure and 55 minutes after opening (All pending orders cancelled)

Order types

  • Market Order
  • Stop Loss / Take Profit Market Order
  • Pending Market Order (very similar to Limit Orders) - the order is executed when best price matches the target price of the order. The resulting price may differ from the best price if the best price volume is not enough to fill the whole order.
  • Pending Stop Loss / Take Profit Market Order (very similar to Take Profit/Stop Loss Limit Orders)

List of Instruments

Instrument Leverage
initial
Leverage
maintenance
BTCUSD 3 3
CHFJPY 200 200
EURCHF 200 200
EURGBP 200 200
EURJPY 200 200
EURUSD 200 200
GBPCHF 200 200
GBPJPY 200 200
GBPUSD 200 200
USDCHF 200 200
USDJPY 200 200
these conditions are valid from 22.11.2017 until further notice. See Product Description for more information.

One contract is 1 unit of Instrument’s base asset. For each instrument XXXYYY, XXX is the base asset and YYY is the quote asset. Long contract is buy 1 unit of base asset and sell corresponding amount of quote asset. Short contract is sell 1 unit of base asset and buy corresponding amount of quote asset.

Countries that aren't eligible for margin trading

Americas

USA

Canada: British Columbia, Quebec and Saskatchewan

Asia and Australia

Japan

Singapore

Australia

Iran

Iraq

Syria

New Zealand

China

South Korea

Democratic People's Republic of Korea (DPRK)

Vanuatu

Africa

Ethiopia

Uganda

Yemen

Europe

Austria

Belgium

Bulgaria

Bosnia and Herzegovina

Czech Republic

Cyprus

Denmark

Estonia

Finland

France

Switzerland

Germany

Greece

Hungary

Iceland

Ireland

Italy

Latvia

Liechtenstein

Lithuania

Luxembourg

Malta

Netherlands

Norway

Poland

Portugal

Romania

Russia

Slovakia

Slovenia

Spain

Sweden

United Kingdom


Terms and conditions of Lykke Vanuatu are applied for Margin Trading.