Margin, Leverage, Margin Call, Stop Out
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By clicking on "Open Demo" you agree to be contacted by representatives of Dukascopy Europe regarding services of Dukascopy Europe and news connected with them. Transactions conducted in the SWFX marketplace may be done on a margin trading basis, enabling a client to execute trades larger than the deposit, amplifing price movement effect.
The multi-currency exposure of the account is limited by the total trading line which is calculated by multiplying the Equity of the account by the leverage agreed with Dukascopy Europe. By default the initial leverage for regular trading hours is set to 1: In order to protect clients from incurring liability above their equity and protect Dukascopy Europe from associated risks, the following minimum margin policy applies: Forex trading margin requirements of brokerage minimum equity requirement for the self-trading account is 20 EUR.
For accounts with different base currency the minimum amount of equity is calculated at the corresponding rate of the latest settlement. All open positions may be closed and the account may be equity sales and trading jobs should the equity on the account reach the minimum margin requirement.
The minimum margin required to open a position depends on the desired leverage, currency pair and current market prices. Due to specific trading conditions following instruments have higher margin requirements lower leverage:.
Maximum available leverage for weekends and other off-market days equals to the lowest value of the over-the-weekend leverage 1: Special margin requirements leverages remain in place disregards of clients requests for maximum leverage increase.
If equity for the self trade account is less than 20 EUR or equivalent in foreign currency, the account forex trading margin requirements of brokerage be blocked by Dukascopy Europe. The Use of Leverage forex trading margin requirements of brokerage an indicator showing how much of the collateral is currently used by the exposure on the trading account.
It is displayed in percentage in real-time and calculated as follows:. However, self-traders can set full close of all open positions in case of margin cut. Maximum available leverage for the weekends and other market closure days is typically set to 1: The purpose of this policy is to mitigate risks caused by potential price gaps during market closure, which may seriously threaten invested funds.
Over-the-weekend trading conditions are effective starting hours before each market closure weekend, holidays, etc until re-opening of the market. For usual Friday night closure, over-the-weekend conditions would become effective at As a result of leverage contraction, the use of leverage can increase if the account has exposure.
Regardless of the over-the-weekend margin conditions, the general execution mechanisms of forex trading margin requirements of brokerage margin call and margin cut remain the same. For precious metals and CFDs maximum net exposure is specified in the table below:. In this case the account leverage will be reduced to 1: The exposure limits come into effect as of Sep Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors.
Forex trading margin requirements of brokerage is highly recommended to maintain the use of leverage at normal levels. The client shall forex trading margin requirements of brokerage solely responsible for maintaining sufficient margin in relation to the existing positions. Send us a messagecall us: Welcome to our FX Community: More info about platform: