Forex

Leverage allows you to trade using borrowed funds, effectively letting you control larger positions with a smaller investment of your own money. Your broker essentially extends a form of credit that amplifies your buying power.

When used alongside a robust risk management strategy, leverage in forex trading can enhance your potential returns by making it more profitable to capitalize on minor price fluctuations. However, it can also increase your risk of loss if not managed properly.

To minimize potential losses and improve your chances for higher returns, it is crucial to have a well-planned risk management strategy and to ensure you’re comfortable with the level of exposure before selecting your desired leverage.

Margin in online forex trading refers to the amount of money required to open a trading position. It serves as a security deposit to cover potential losses due to price fluctuations. Forex brokers typically set this as a percentage of the overall trade size, which is influenced by the leverage you select.

To initiate a forex trade online, you must have sufficient funds in your account to meet the margin requirement. By setting an appropriate margin level in line with your risk management plan, you can better control your trades and mitigate potential risks.

Significant market volatility and price gaps can occur when important news is announced. Using high leverage during such volatile periods can be risky, as it can lead to substantial losses. For this reason, we limit leverage to 1:200 for all new positions on affected instruments during news releases.

When intervals of increased margin requirements for various news releases are less than 15 minutes apart, these periods may be combined into one extended duration for the relevant instruments. We will send you an email with detailed information on any changes to margin requirements on your trading platform.

Once the specified period ends, the margin for positions opened during this time is recalculated based on the account’s equity and the selected leverage level.