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For all account types, the minimum lot size in the trading terminal is set at 0.01. The maximum lot size is determined by the equity available in your account.
In Forex, a standard lot size consists of 100,000 currency units. The prevalent leverage in Forex trading is often 1:100. To meet lower capital requirements, clients can opt for 1:500 leverage during account registration, requiring a minimum capital of $100.
Leverage
The leverage available, ranging from 1:100 to 1:500, depends on the equity of your trading account.
Margin pertains to the funds accessible within a trading account for initiating orders and sustaining Forex trading activities. The following guidelines should be observed:
- It’s prohibited to close orders leading to a net position or net margin increase one hour prior to symbol breaks and market closure on Fridays. During this period, new positions can be opened with reduced leverage – 1:100 for Forex and 1:40 for commodities.
- Closing orders that would raise the net position or net margin is not allowed one hour prior to significant news releases (indicated as “!!!” in our economic calendar) that are expected to heighten market volatility. During this period, new positions can be opened with reduced leverage – 1:100 for Forex and 1:40 for commodities.
Please note, if your trading account is linked to our Marketplace liquidity aggregator, the margin value will be recalculated based on the account’s leverage upon market opening on Mondays.
The margin is utilized to support opposing (locked) positions on the same instrument. For maintaining locked positions of identical volume, the margin requirement is zero. Nevertheless, sufficient funds must be available in the trading account for the initial margin at the time of opening the locking order. The total margin will only reach zero after the locking order has been executed.
Swaps are automatically applied during rollover, which occurs when an order extends to the next calendar day. Notably, swaps are tripled from Wednesday to Thursday. These swaps are subject to fluctuations based on national interest rates. It’s important to be aware that if your trading account is connected to our Marketplace liquidity aggregator, swaps will be applied at 23:00 as per terminal time.
The essential margin level for Forex activities is calculated as the ratio of the balance and the sum of floating profit minus floating loss. The margin call functions as a “warning threshold,” which increases during weekends and holidays to 100% for accounts with a 1:100 leverage and 500% for those with higher leverage. The broker reserves the authority to restrict the initiation or closure of Forex orders and reduce the Margin to the Margin call level within one or two hours before market closure, including opening hedging positions.
When the margin level reaches a certain threshold indicating a high risk of negative balance, trading activity is halted. In such cases, orders are forcibly closed until the margin level is restored. It’s important to understand that our company employs a Stop Out level to mitigate the potential risks of clients incurring a negative balance. This precaution is taken to safeguard clients’ accounts and ensure responsible trading practices.
Note: Clients are advised not to rely on the Stop Out level as a component of their risk management strategy; instead, the use of Stop Loss orders is recommended. It’s important to understand that once the StopOut or Credit StopOut level is reached, all pending orders will be canceled for trading accounts linked to the MarketPlace liquidity aggregator. You can refer to the account’s parameters table to find the Margin Call and Stop Out levels specified.
The activation of gap mode hinges on a specific criterion. When the price gap for a particular instrument equals or surpasses one spread, the gap mode is triggered. This mode facilitates the automatic execution of orders by the dealer, encompassing both Stop Loss and Take Profit orders at the gap price. Activation of gap mode occurs on the second tick following its deactivation.
Note: Gap mode does not affect trading accounts utilizing our own liquidity aggregator, MarketPlace. In these accounts, pending orders, as well as Take Profit and Stop Loss orders, are executed based on the market price, potentially resulting in slippage of up to 1 pip. It’s important to note that market and pending orders, including Stop Loss and Take Profit, may not be executed if the price has not been validated by the liquidity provider.
In cases where a pending order with attached Take Profit and/or Stop Loss is positioned, and the market price surpasses the order price while the Take Profit/Stop Loss levels lie within the gap, the order will activate at the gap price. Subsequently, it will be closed at the market price, accompanied by the [closed/gap] annotation. The end outcome of this order will be negative by a single spread.
Note! The Company reserves the right to apply or do not apply these trading conditions without prior notification.
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Risk Warning: Trading our products on margin involves substantial risk, and you are likely to lose all the capital you have invested. These products may not be suitable for all individuals, so it is essential to comprehend the associated risks thoroughly. Kindly refer to our Risk Warning, which is accessible here.
Disclaimer: The information provided in this material is meant for general informational and educational purposes only and should not be construed as investment or financial planning advice. We do not guarantee the accuracy or completeness of this information. TradeFx Pte. Ltd. disclaims any responsibility for any actions taken based on these comments and any resulting consequences. The views and opinions expressed in this content belong to our educators and do not necessarily represent the official policy or position of TradeFx Pte. Ltd.
TradeFx Pte. Ltd. has the option to utilize its associated entities, such as ABS Advanced BackOffice Services Limited and/or TradeFx Pte. Ltd. as payment processors acting on behalf of the Company. Additionally, the Company may enter into agreements with third parties to process or facilitate transactions on its behalf. In doing so, the Company may share relevant information with these related entities or any other company within the same group if such information is reasonably necessary to deliver products or services to its clients.