Understand Leverage & Margin
Leverage & Margin
Leverage trading, or trading on margin, means you aren't required to put up the full value of the position.
Forex trading offers more leverage than stocks or futures - up to 200 times the value of your account. Of course keep in mind that increased leverage also increases your risk.
No debit balances, no margin calls
At most brokers, your risk is only limited to funds on deposit. There are no margin calls in Forex trading, so if your account falls below required levels, for your protection we will close out all positions automatically. You'll never lose more money than you have in your account.
More leverage means more opportunity - and more risk
It's crucial to remember: increasing leverage increases risk. To limit downside risk, monitor your account regularly and use stop-loss orders on every open position.
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