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Margin and Leverage

Margin

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.

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.

At AAFX TRADING we offer leverage upto 1:2000 along with proper perform risk monitoring and negative balance protection methodologies at all times.

Please review this page to learn about Forex and CFD Margin Requirements.

  • Customer must maintain the Minimum Margin Requirement on their Open Positions at all times.
  • AAFXTrading.com has the right to liquidate any or all Open Positions whenever the Minimum Margin Requirement is not maintained.
  • Margin requirements are subject to change at any time. In order to prevent any confusion, AAFXTrading.com, at its best effort, will inform customers about any projected changes on Margin Requirements by email and via the messaging system of the trading platform at least a week before changes are implemented.

Margin Calls

  • Customers will be warned by the trading platform, at 25% margin level, that their position will start liquidating at 20% margin level. Customers will only get an automatic margin call notification if they are logged into their trading platform. Therefore, customers are advised to log into their trading platform on a regular basis to ensure they monitor their Equity and any relevant notifications accordingly. AAFXTrading.com may also alert Customers by phone-call and/or by email that they are getting close to automatic trade liquidation of their positions. The Customer will be advised to deposit additional funds into their account or instructed to reduce/close out current open positions.
  • In addition, AAFXTrading.com may, from time to time and at our best effort, contact Customer and request that Customer deposit additional Collateral to secure Customer’s obligations to AAFXTrading.com. Any call for additional margin shall not be deemed precedent for future calls nor future waiver of liquidation rights by AAFXTrading.com.

Leverage

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.

AAFXTrading Company LTD is one of the world’s fastest growing Forex & CFD provider.The company offers Foreign Exchange and CFD trading on multiple TRADING PLATFORMS, including the globally popular MetaTrader 4 platform.
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