Margin Policy

Effective 3pm EST on December 20th, 2007, the minimum Margin Requirement offered by MG Financial Group is 1%. Under the percentage based margin, the required margin for all accounts is a percentage of the numerical value of the Base Currency or the first currency in a pair. For example, for the USD/CAD the Base Currency is USD whereas for the EUR/USD pair, the Base Currency is Euro.

I. For USD based currency pairs, the minimum margin requirement is equal to $1000 per unit.

Example:

1 unit of USD/JPY	1 unit of USD/CHF	1 unit of USD/CAD
1% of $100,000 = $1,000	1% of $100,000 = $1,000	1% of $100,000 = $1,000

II. For non-USD based currency pairs including cross pairs, the minimum margin requirement is equal to 1% x 100,000 base currency x prevailing market rate

Example:

1 unit of EUR/USD	1 unit of GBP/USD	1 unit of AUD/JPY
1% x 100,000 EUR x 1.4390 = $1,439*	1% x 100,000 GBP x 2.0210 = $2,021**	1% x 100,000 AUD x 0.8575= $857.5***

*Calculated at the market rate of 1.4390 at the time of conversion
**Calculated at the market rate of 2.0210 at the time of conversion ****Calculated at the market rate of 0.8575 at the time of conversion

III. Clients can require margin greater than 1%, e.g. 2% or 3%, and follow the example of the 1% margin requirement calculation to find out the margin value amount.

Example:

1 unit of USD/JPY	1 unit of USD/CHF	1 unit of USD/CAD
2% of $100,000 = $2,000	2% of $100,000 = $2,000	2% of $100,000 = $2,000

Example:

1 unit of EUR/USD	1 unit of GBP/USD	1 unit of AUD/JPY
2% x 100,000 EUR x 1.4390 = $2,878*	2% x 100,000 GBP x 2.0210 = $4,042**	2% x 100,000 AUD x 0.8575= $1,715***

0.1 unit of USD/JPY	0.1 unit of USD/CHF	0.1 unit of USD/CAD
1% of $100,000 x 0.1 = $100	1% of $100,000 x 0.1 = $100	1% of $100,000 x 0.1 = $100

Example:

0.1 unit of EUR/USD	0.1 unit of GBP/USD	0.1 unit of AUD/JPY
1% x 100,000 EUR x 1.4390 x 0.1 = $143.9*	1% x 100,000 GBP x 2.0210 x 0.1 = $202.1**	1% x 100,000 AUD x 0.8575 x 0.1 = $85.8***

*Calculated at the market rate of 1.4390 at the time of conversion
**Calculated at the market rate of 2.0210 at the time of conversion
***Calculated at the market rate of 0.8575 at the time of conversion

V. Any account with 1% or greater margin and long the higher interest rate currency in the pair will be able to earn rollover fees. For more details of the rollover policy, please click here.

Clients should be aware of two additional important changes:

1. Margins will be expressed as a percentage of the unit size of a currency pair rather than being calculated as a function of a fixed dollar amount. For example, previously a customer trading 2 units of GBP/USD on a $1000/unit would need to maintain $2,000 (2 x $1,000) to keep the trade open; whereas after the margin change the customer would require $4042.00***** (200,000 GBP x 1% x 2.0210) to keep the same trade open.

***** Calculated at the market rate of 2.0210 at the time of conversion

2. The usable margin for cross pairs, e.g. EUR/JPY & AUD/JPY, will be affected not only by the cross price but also by movements in EUR and AUD against USD. For instance, even if a cross price is moving in the customer's favor the Usable Margin could still be negatively affected if the Dollar falls significantly against the Euro or the Australian Dollar.

If you have any questions about this margin change or if you need help in calculating your margin, please do not hesitate to call us or email us at service@mgforex.com

It is the customer's responsibility to monitor and maintain his/her margin account balances at all times. MG reserves the right to adjust the per-unit margin requirement at any time.The customers will be informed of margin changes via a pop up window on the DealStation™. Customers should make all necessary precautions to prevent a margin call if the desire of the customer is to hold onto his/her open position(s). When an account balance is no longer able to cover the minimum margin requirement, all positions will be closed automatically. Clients with open positions are advised to check their margin status constantly via the DealStation™ platform that tracks margin details in real-time on the Account Status Reports.