Xemarket

Tuesday, 4 September 2012

XEMarkets Leverage

nables you to purchase an amount that exceeds your account value. Without this allowance, you would only be able to buy or sell tickets of $1,000 at a time.

XEMarkets Leverage

For any of the XEMarkets trading accounts, you can select your leverage on a scale from 1:1 to 888:1. Margin requirements do not change during the week, nor do they widen overnight or at weekends. What is more, at XEMarkets you have the option to request either the increase or decrease of your chosen leverage.

Leverage Risk

On the one hand, by using leverage, even from a relatively small initial investment you can make considerable profit. On the other hand, your losses can also become drastic if you fail to apply proper risk management.
This is why XEMarkets provides a leverage range that helps you choose your preferred risk level. At the same time, we do not recommend trading close to a leverage of 888:1 due to the high risk it involves.
High leverage may multiply both big profits and big losses – this is why we suggest our clients to make transactions that are in accordance with their risk tolerance. The maximum risk of loss depends on the amount deposited in your trading account, which means that you cannot lose more money than you deposited.

Margin Monitoring

At XEMarkets you can control your real-time risk exposure by monitoring your used and free margin.
Used and free margin together make up your equity. Used margin refers to the amount of money you need to deposit to hold the trade (e.g. if you set your account at a leverage of 100:1, the margin that you will need to set aside is 1% of your trade size). Free margin is the amount of money you left in your trading account, and it fluctuates according to your account equity; you can open additional positions with it, or absorb any losses
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Margin Call

Although each client is fully responsible for monitoring their trading account activity, XEMarkets follows a margin call policy to guarantee that your maximum possible risk does not exceed your account equity.
As soon as your account equity drops below 50% of the margin needed to maintain your open positions, we will attempt to notify you with a margin call warning you that you do not have sufficient equity to support open positions.
In case you are a client accustomed to telephone trading and we feel that you can’t maintain your open positions, you may receive a margin call from our dealers, advising you to deposit a sufficient amount in order to maintain your open positions.

Stop-out Level

The stop-out level refers to the equity level at which your open positions get automatically closed. For MICRO accounts we have a 5% stop-out, while for STANDARD and EXECUTIVE trading accounts the stop-out level is 20%. 

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