Key Information Documents

Key information document (Crypto FX)

Spreads and Margin

The clients of ELANA Trading can trade without any commissions the following currency crosses in the platform ELANA Global Trader:

Margin

To create a buffer between your trading capacity and the margin close-out level, which ESMA has standardized, ELANA Trading applies two different margin requirements:

1. Initial margin (IM): a pre-trade margin check on order placement, i.e., on opening a new position there must be sufficient margin collateral available on account to meet the initial margin requirement.
2. Maintenance margin (MM): a continuous margin check, i.e., the minimum amount of margin collateral that must be held on account to maintain an open position(s). Maintenance margin is used to calculate the margin utilization.

Different instruments have different initial and maintenance margin requirements. Broadly speaking clients will not be able to open new positions when the margin utilization exceeds 50% when trading with CFDs, Crypto FX and FX.

Example: Margin requirements for BTCUSD:

• IM = 50%
• MM = 40%
• MM/IM = 0.8

Let’s assume we have 10 000 USD cash and we want to open the largest BTCUSD position possible. To achieve that we place an order for BTCUSD with Initial Margin (IM) in the amount of 10 000 USD. After the order is executed the Maintenance Margin (MM) reserved will be equal to 8 000 USD (0.8*IM). If the market starts going against our position and we lose 1 000 USD our cash available will be 9 000 USD. MM will be less than 8 000 USD and the margin utilization will be around 88.88% (8000/9000*100). If we try to execute the same order again the platform will not let us because the initial margin available is reduced by the initial margin reserved for the open positions.

Summary: Initial margin is used to open new margin positions. Initial margin available is reduced by the initial margin reserved for open positions.

FOREX Trading Hours

Crypto FX is open for trading from Monday to Friday. Trading hours start every day at 01:00 and close at 23:55 (EEST).

Please note that the underlying crypto market remains open on weekends and any Crypto FX exposure should be managed and adjusted before the FX trading session closes on Friday evening.

Crypto FX Rollover Procedure

Crypto FX positions do not settle into physical crypto. Instead, Crypto FX positions have a rolling value date and any open positions held at the end of a trading day (17.00 Eastern Time) are rolled forward to the next available business day depending on the fiat currency.

Swap points (positive and negative) are determined by various factors including the crypto lending market, the futures market and general market conditions. The Tom/Next swap points are derived from the interest rate differential between the crypto funding rate and the interest rate on the fiat currency. The current Crypto FX funding rate applied is 15% p.a. for long positions and 0% for short positions +/- 3.45%. Additionally, any unrealized profit/loss on positions that are rolled from one day to the next are subject to an interest credit or debit. The unrealized profit/loss is calculated as the difference between the opening price of a position (possibly corrected for previous Tom/Next rollovers) and the Spot price at the time that the rollover is performed.

FIFO (First-In-First-Out)

When netting open FX positions Elana uses FIFO (First-In-First-Out) rules, which means that the first position that you open is the first position to be closed. This is provided that the positions are on the same account and that none of the positions have related orders attached.

Example: You are trading BTCUSD and have opened the following positions:

1. Buy 1M BTCUSD
2. Buy 1M BTCUSD
3. Sell 1M BTCUSD
4. Sell 2M BTCUSD

Total: Sell 1M BTCUSD

The first long position 1) will net out with the first short position 3), the second long position 2) will net out with half of the second short position 4), leaving only one short position of 1M BTCUSD at the end of the trading day.