HFM Return on Free Margin

Explore the Benefits of Free Margin in Trading!

Earn daily profits on your free margin, credited monthly to your trading account.

What is Margin in Trading?

Before diving into the advantages of the promotion offered by HFMarkets, let’s clarify what margin is and how free margin is calculated.

In simple terms, margin represents the minimum deposit required by the broker to maintain open positions. It is a portion of the capital in your account that is set aside and reserved for the deposit (thus cannot be used in other trades). It should not be confused with trading costs or commissions. Margin serves as a guarantee that the broker requires for clients to open and maintain active positions. Once profits are realized, the margin is released and becomes available in the trader’s account.

• Normally, the percentage of margin used varies, ranging from 0.25%, 0.5%, 1%, to 2%. The applied percentage is calculated based on the total value of the trade, including any leverage used.
• Higher trading volumes and applied leverage result in higher margin requirements. Additionally, the margin level increases or decreases based on the number of open positions.

To calculate the margin level, use the following formula:

Margin Level = (Equity / Used Margin) x 100.

For example, a trader has an account equity of €1000, and the broker has blocked €200 due to open positions. In this case, the margin level would be 222.22%.
When the margin falls below the threshold of 100% (meaning the equity is lower than the margin), a margin call is triggered automatically.

On the other hand, “free margin” refers to the funds available in your account to open new positions. It represents the difference between the capital and the margin used in the account. You can calculate it using the following formula: Free Margin = Equity – Margin.

Visit the official HFMarkets website

Return on Free Margin with HFMarkets

HFMarkets offers traders the opportunity to benefit from free margin through an exciting initiative called “Return on Free Margin.”

Here’s how it works: By participating in this initiative, clients can profit from their daily free margin and the monthly trading volume. The overall return will be credited monthly to the participant’s portfolio.

Check the table below to understand how traders can profit from their free margin on a daily basis:

Daily Free Margin	Monthly Trading Volume in Lots
	5-50	>50
	Return Rate on Free Margin
$1,000.01 – $25,000	2%	2.5%
ABOVE $25,000	2.5%	3%

Profit from Free Margin with HFMarkets

Free margin will be calculated daily at midnight server time using the following formula:

Free Margin = Net Equity – Margin (Used) – Bonus

Regarding earnings and returns on free margin, they are calculated daily as follows:

Return on Free Margin = Free Margin x (Return Rate on Free Margin (%)/100/365)

For example:

• Assuming a total trading volume of 25 lots.
• An account equity of $50,000.
• And a used margin of $5,000.

According to the formula, the amount of free margin would be: $50,000 (Net Equity) – $5,000 (Used Margin) = $45,000 (Free Margin).

The return on free margin for that day would be calculated as follows: $45,000 (Free Margin) x (2.5% return rate on free margin/100/365) = $3.08 return on free margin for that day.

Profit from Free Margin with HFMarkets

Terms and Commissions

Every HFM client can participate in the promotion with any trading account type (Micro, Premium, Auto, Zero, Platinum, and HFCopy), except for PAMM account holders. The trader must carefully read and accept the imposed regulations. Here are the key details about the promotion:

• Any additional funds derived from bonuses and funds not transferred to eligible accounts will not be considered as free margin.
• To receive a return on free margin, the trader must trade a minimum of 5 lots monthly on open and closed trades for a duration exceeding 3 minutes.
• The trader can only invest in forex and metals CFDs.
• After meeting the required trading conditions, the client must fulfill the following criteria to profit from the free margin:
  • The total free margin across all client accounts must be above $1,000 (or the equivalent amount in another currency).
  • The trader must have at least one open trade in forex or metals CFDs.
• The profit generated from free margin will be credited to the trader’s account in the following month.
• The payment of free margin will always be in the base currency of the trader’s account.
• The profit generated from free margin is unrestricted and can be withdrawn at any time or used for trading.
• Every client can check their payment history through the myHF area.

For further information regarding this initiative, visit the official HFMarkets website and contact the 24/7 support team.

Profit from Free Margin with HFMarkets