Margin is defined as the amount of money required in your account to place a trade using leverage. The amount that is required to be tied up as a security is called ‘margin requirement’ and will be free to use once a position is closed.
At capitalfx-trade TRADING offer leverage up to 1:2000 along with proper perform risk monitoring and negative balance protection methodologies at all times.
1:2000 leverage will stay up to $20k account size in the standard account like FIXED AND ECN and after that, it will down to 1:1000 and further drop down to 1:500 after $50k account size.
But if you want to use 1:2000 leverage to the bigger account size you should take VIP in this account 1:2000 leverage will stay up to $250k and after that go down to 1:1000 until $500k and further drop down to 1:500
capitalfx-trade offer 100% negative balance protection. It means if the account went into negative the company will reset the account to zero and the client will not be liable to pay the negative.
Margin can be calculated by dividing your trade size by your leverage. For example, your trading leverage is 1:100 and you have an open trade for $10,000, the margin requirement to support that trade would be 10,000/100 = $100.
Leverage is also a very critical factor that is associated with margin when trading the markets. We offer the highest leverage in the forex industry which helps our clients to trade more with less money.
A leverage amount or percentage gives you the opportunity to invest more funds than you initially placed in your trading account.
For example, with a 1:200 leverage you can manage a $200,000 investment with $1,000, meaning that the trading funds would be 200 times greater than your deposited amount.
You can monitor your free and used margin at all times. Our margin call policy ensures and guarantees that our clients’ balances will not be over exposed.
Note: Leverage does change according to the account size for all types of accounts and the details are given below.
ECN AND FIXED: The maximum leverage will be 1:2000 and this leverage in these account types restricted to the account size up to $20000. Above $20000 to $250000 the leverage will drop down to 1:1000 and further drop down to 1:500 above $250000 with no further restrictions.
VIP: The maximum leverage will be 1:2000 and this leverage in this account type restricted to the account size up to $250000. Above $250000 to $500000 the leverage will drop down to 1:1000 and further drop down to 1:500 above $500000 with no further restrictions.