This facility allows a customer to trade in foreign currencies using his deposit account with the bank as collateral. The customer may take positions up to 10 times the value of the balance in his deposit account , with his trading profits or losses passed over that account .The bank requires that the account balance should at all times be 10 % of the value of outstanding positions . In the event that the balance falls below that level through adverse market movements the customer must remit additional funds, failing which the bank reserves the right to liquidate the positions.
Margin accounts are managed on a non-deliverable basis whereby on the value date, positions are liquidated by the bank with the current profit or loss booked to the customer’s account. The customer may also choose to rollover the position at the then current market prices. The facility is available for trading in all major currencies.