Explore our comprehensive table below, detailing the leverages across all of our challenge models.
Understanding Margin Rules in Leveraged Trading
Leveraged trading allows you to control large positions with a smaller amount of capital, increasing both potential returns and risks. It’s essential for traders to actively manage their open positions and be aware of margin requirements to avoid unwanted consequences. Understanding your account’s margin rules is key to managing risk effectively.
Margin Rules for Evaluations and Simulated Funded Demo Accounts:
• Margin Call (110% margin level): If your margin level drops to 110%, you will receive a Margin Call and be unable to open new trades. This serves as a warning that additional funds may be needed to maintain your open positions.
• Stop Out (below 100% margin level): If your margin level falls below 100%, the least profitable positions will automatically close (Stop Out) to prevent further losses.
To manage your margin levels, consider reducing your lot sizes. Proper risk management, including the use of stop losses, is strongly recommended to avoid Margin Calls. Your available margin is calculated based on your current demo account balance.
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