When you open a trade, you will see that we reserve a certain amount of cash from your account = this is the so called Ring Fenced amount.

Its sole function is to make sure there is always enough cash on your account to cover trading & financing fees for your open positions and makes sure that your account will never be negative. 

The amount that we reserve is always 5% of the total account value (invested amount + Cash).

The minimum Ring Fenced amount is £5. 

This measure is also only temporary. Once you've closed all your positions, the Ring Fenced amount will be available to withdraw.

Check out this example:

  • Say, you deposit £100 in your BUX account. The moment you make a trade, your Ring Fenced amount will be (5% of 100) £5. 
  • If you invest £70 and the value of your investment grows to £80, your Ring Fenced amount will stay the same. 
  • However, once you close your investment, your total account value would increase by £10, taking your account value to £110. If you make a new trade, your Ring Fenced amount will be 5% of 110 = £5.50.

Questions? Yell out at BUX Support.