Leverage AND Margin Requirements
- Leverage up to 888: 1
- Leverage from 1: 1 to 888: 1
- Effective minus balance protection
- The risk level can be checked online
- Fixed margin requirements
- Leverage size is highly flexible – from 1: 1 to 888: 1
- Traders have the opportunity to trade with the same leverage and the same margin requirements – from 1: 1 to 888: 1.
The deposit to cover the credit risk in trading is called margin. It is counted as a percentage of the size of an open order. Trader must have enough funds on his trading account so the margin would be according to them. For example, if position is $ 1 million with a 1% margin, you should invest $ 10,000 in your deposit.
In order to open a new transaction, the deposit on the account should be the same or more, otherwise the account will have to be fully hedged if new transactions would be opened.
Dynamic Interest Margin
We offer the function of the dynamic leverage size, which supposes its automatic change, which depend on the order amount and used deposit per each financial instrument. In other words, if the transaction volume carried out per each instrument increases, the deposit percentage will also grow according to the dynamic leverage indicator.
The use of leverage when opening an order is an opportunity to create a transaction, the amount of which significantly exceeds the amount in the account. The leverage is expressed by proportion, for example: 1: 100, 1: 200, 1: 500. For example, if the account deposit is $ 1,000 and the leverage is 1: 500, then a trading order can be opened in the amount of $ 500,000.
A trader gets the opportunity to trade in amount that is 500 times greater than the amount in his trading account. This is an TwiceFX interest free rebate for more advanced trading. If this privilege did not exist, it would be possible to conduct purchase / sale transactions only for the amount of your deposit, i.e. no more than 1000 dollars.
We are constantly monitoring the size of leverage on client accounts, having the ability to decrease its amount. Such changes are performed individually and without any notification. TwiceFX can change the leverage as per its own decision for one of trader’s account or at all of them.
TwiceFX Leverage amount
When creating an account in the company, trader can choose different leverage options in the range from 1: 1 to 888: 1. During the week, at night, on weekends, margin requirements remain unchanged. Our clients also have the opportunity to change the size of the selected leverage (increase or decrease).
Leverage and risk management
The use of leverage is an opportunity to significantly increase profit even if your own investments are rather small. However, it might be also potential loss if risk management will be inappropriate.
Each client will be able to choose for themselves such a leverage option that will correspond to client’s capabilities, but the risk level must also be taken into account. We do not recommend choosing the highest leverage, because the higher it is, the higher the risks.
Real-time Margin monitoring
Each of our clients can monitor their risk online by analyzing the margin (currently used and free). Margin, which is used at the moment, and free margin are the amount of the trader’s own funds. Margin is a sort of financial tool which is specified prior to the creation of a specific position. For example, with a leverage of 1: 100, 1% of the transaction volume should be reserved for margin. The balance on the trading account is a free margin. These funds can be used both to cover losses and to open other orders.
Each trader must control its own trading operations completely by himself, but despite this, TwiceFX sends notifications to its clients that it is necessary to add additional funds if it is necessary to support certain positions that are open at the current moment.
We will send you a warning about the lack of funds on your account if the margin required to support the opened positions is less than 50%.
Stop Out Level (Stop Out)
Your open orders will automatically close reaching the stop-out level. This level is 20% of the trading accounts of private clients of our company: Ultra Low, MICRO, and STANDARD.