CMS International currently offers customers three leveraging options. The first option is for customers that prefer higher leverage of up to 400:1. The second and third margin options are for customers that prefer lower leverage. Unless a customer specifically requests otherwise, the first margin option will be the default option as calculated by the Visual Trading platform.

Option 1

FOR USD DENOMINATED ACCOUNTS

The default margin requirements for 10K lots and standard 100K lots in US Dollar denominated accounts are as follows:

# of Standard Lots	Margin Requirement per Round Turn 100K Lot (USD)	Margin Requirement per Round Turn 10K Lot (USD)
0 - 3	$250	$25
3.1 - 10	$500	$50
10.1 - 50	$1,000	$100
50.1 & up	$2,500	$250

THE FOLLOWING EXAMPLES ARE NOT RELEVANT TO USD DENOMINATED ACCOUNTS

Currency pairs that have USD as the base, or first, currency

For currency pairs that have USD as the base currency (USD/JPY, USD/CHF, USD/CAD), the margin requirement in non-USD denominated accounts is found by multiplying the USD amount from the above table by the current market rate of your deposited currency. An example of this conversion with USD/JPY, in a Yen-denominated account, is as follows:

250 USD X 110 (current rate) = ¥27,500 (required margin)

Currency pairs in which the base, or first, currency is other than USD

For such currency pairs, the margin requirement can be found by dividing the USD amount from the above table by the current market rate of your deposited currency. For example, if a trader has an account denominated in EUR, the margin requirement for one standard 100K lot would be ˆ 204.03, assuming a EUR market rate vs. USD of 1.2253. 250 USD divided by 1.2253 (current rate) = ˆ204.03 The above conversions are automatically calculated by the Visual Trading platform at the moment that each new lot is opened.

Let us assume, as an example, that you have an account denominated in British Pounds, and you have £2,000 available margin. You want to buy 5 standard lots and 5 10K lots (5.5 lots). If the current market rate of GBP/USD is 1.8300, your total margin requirement would be £1,092.90. Below is an explanation of how this margin requirement was calculated:

$250 (margin requirement) / 1.8300 (current rate) X 3 = £409.84 (for the first 3 lots)

$500 (margin requirement) / 1.8300 (current rate) X 2.5 = £683.06 (for the next 2.5 lots)

The combined margin requirement for 5 100K lots and 5 10K lots is £1,092.90. You would therefore have £907.10 remaining usable margin.

Option 2

This optional margin requirement structure for 10K lots and standard 100K lots in US Dollar denominated accounts is as follows:

# of Standard Lots	Margin Requirement per Round Turn 100K Lot (USD)
0 - 50	$1,000
50.1 & up	$2,500

The margin requirement for 10K lots will be $100 per lot (0.1 X $1,000 = $100).

All margin conversions for non-USD denominated accounts are done in the same way as the default option, but this option represents maximum leverage of 100:1.

Option 3

The third option is a flat $2,500 margin requirement per lot ($250 per 10K lot). This option represents maximum leverage of 40:1.

All margin conversions for non-USD denominated accounts are done in the same way as the default option, but this option represents maximum leverage of 40:1.

To select Options 2 or 3, all clients must email CMS International at customerservice@cmsfxinternational.com. This email must include the client’s name, account number and which margin option should be applied to the account. Unless CMS International receives explicit instructions, the default option (Option 1) will be applied to all accounts.

All margin conversions will be calculated automatically by the Visual Trading platform at the moment that each new lot is opened.

It is important to note that the above margin requirements are on a per-account basis, not on a per-position basis. For example, using Option 1, if you buy 3 lots of EUR/USD and 2 lots of GBP/USD, the margin requirement is as follows:

$250 (margin requirement) X 3 lots = $750

$500 (margin requirement) X 2 lots = $1,000

The total margin requirement for the combined 5 lots is $1,750. **

Please note that net margin requirements are based on net positions. If a new order offsets all or part of a position, the margin requirement is based on the net remaining position. For example, if a trader is long 0.4 lots of EUR/USD, and then sells 1 full lot of EUR/USD, there remains 0.6 lots on the short side. Your new margin requirement will be based on 0.6 lots, not 1.4. This will therefore require $150 margin.

These margin requirements apply to all accounts, regardless of the currency in which the account is denominated.

If you have any questions, please feel free to contact CMS International at 441-296-3663 or send an e-mail to customerservice@cmsfxinternational.com.