Leverage allows a large trade position to be initiated with a small
margin deposit. The amount of leverage available to a trader varies,
with magnification of up to 30:1
For example 10:1, meaning that currency trades worth $10,000 can be made with a margin deposit of $1,000. Leverage allows the use of credit to trade amounts larger than your deposit.
Remember, the higher the leverage the higher the risk of losing your deposited capital. Leverage can work both for you as well as against you.
Your Margin is monitored in real time, providing you with the benefit of knowing where you stand at all times. The Maintenance Margin level is the minimum amount of equity needed to maintain an Open Position. Should your equity fall below the minimum amount, OffersFX will automatically execute a Margin Call trade and close any open positions until your account equity exceeds the Maintenance Margin level requirement.
Example of a Margin Call:
You signed up and deposited $10,000 via credit card:
10.20am - You buy 200 Google Shares (CFDs) at $540.00.
The total amount you bought is: 200*$540 = $108,000.
The Initial Margin that is needed for 200 Google Shares is 2%: $2,160.
The Maintenance Margin that is needed to maintain 200 Google Shares is 1%: $1,080.
If your equity drops below $1,080 you will get a Margin Call. OffersFX will liquidate your open positions.
1.00pm - Google shares drop to $510.
1:15 pm - Google shares fall to $495. You receive a Margin Call and OffersFX liquidates your position.
The reason you received a Margin Call is because your Equity is $1,000 and you need $1,080 to maintain an open position on 200 Google Shares. Therefore, OffersFX has liquidated your position. Your current balance is:
To open a new position, your available account equity must exceed the trade's initial margin level requirement. Margin levels vary among the different financial instruments.
You can view your required margin total under the My Account bar on the left side of the trading platform page. Please be aware that your initial margin is continuously monitored in real-time.
To keep your new position open, the equity in your account must exceed the total Maintenance Margin Level. The Maintenance Margin Level requirements are specific to each financial instrument. OffersFX always displays the Maintenance Margin level for each individual instrument.
You can view your Maintenance Margin under the My Account Bar on the left side of the Main Page. Please remember that your Maintenance Margin is continuously monitored in real-time.
For your financial safety, if additional margin is not provided, OffersFX will automatically close out positions on your behalf. Remember, the higher the leverage the higher the risk of losing your deposited capital. Leverage can work both for you as well as against you.