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Margin and Leverage

Margin and leverage are essential aspects of forex trading, allowing traders to amplify their market exposure and potential profits while managing their capital efficiently.

What is Margin?

Margin is the deposit required to maintain open positions. You are required to maintain sufficient margin to keep current positions or open new ones. MYFX Markets has implemented the following systems in order to protect clients from unwanted losses due to sudden market fluctuations.

Leverage Available up to 1000:1

We open the Forex markets to retail traders by offering leverage up to 1000:1. Your trades are executed using borrowed money which means that you can take advantage of even the smallest moves in the market.

For example, 100:1 leverage allows you to trade with $10,000 in the market by setting aside only $100 as a deposit or “initial margin”. In order to prevent unwanted losses due to sudden market fluctuations, 1000:1 leverage is available up to a account balance of USD 7,000 (or equivalent).

Margin Call

A Margin Call is an alert to deposit additional funds into your trading account in order to protect against the risk of adverse market movements.

As soon as your account margin level drops below 90% of the required margin, you will receive notifications in the Mailbox section of your MT4 or MT5. This is to alert you that you don’t have sufficient funds to maintain open positions.

Margin calls can be made at short notice and can be substantial. It is important for you to familiarise yourself with our Margin Call Policy. Be aware that it is the Client’s responsibility to monitor positions and make any margin payments as they become due.

Stop-out Level

At MYFX Markets, the stop-out level represents a critical equity point, set to safeguard your investments on the MT4 and MT5 platforms. This mechanism activates when your account's margin level dips below 50%, prompting MT4 and MT5 to automatically begin closing your open positions.

The closure process strategically targets positions with the largest floating losses first, effectively preventing your account balance from falling below zero and minimising potential further losses.

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Copyright © 2024 MYFX Markets
MYFX Markets Pty Ltd registered address is U801 and U802, 6 Glen street, Milsons Point, NSW 2061, Australia, ABN 64 602 904 987 provides you with educational resources to help you become familiar with all the trading features and tools in the trading platform. With the demo account you can test any trading strategies you wish in a risk-free environment. Please bear in mind that the results of the transactions of the practice account are virtual, and do not reflect any real profit or loss or a real trading environment, whereas market conditions may affect both the quotation and execution. FX products are leveraged products and trading FX therefore involves a high level of risk that may not be suitable for everyone. MYFX Markets recommends that you ensure that you fully understand the risks involved before making any decision concerning MYFX Markets’ products. Independent advice should be sought if necessary.

Warning: FX market involves significant risks, including complete possible loss of funds. Consequently trading is not suitable for all investors and traders. By increasing leverage risk increases as well.

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