Margin and Leverage
In Forex Heart, you can feel the difference of secure trading environment.
Regardless of the customer's country of origin, with the same margin requirements, you can deal with up to 1,000 times the leverage.
Leverage the provision of up to 1,000 times the maximum
・Maximum 1,000 times of high leverage
・Account balance does not become negative
・Monitor the risk exposure in real time
・Night of the margin rate of no change
Definition of Margin
Margin, plays the role of collateral against the losses that occur at the time of the transaction.
Margin FX is may be expensive, the higher the risk in proportion to the magnitude of the amount of money, but it is also possible to obtain a larger profit than that amount.
Margin is expressed as a percentage of position scale (for example, 5% and 1%).
Sole purpose of holding the funds to your Accounts is of such order to ensure a sufficient margin.
For example, in the case of a 1% margin, the position of the US $ 1 million will be required deposit of US $ 10,000.
Definition of leverage
In the FX market, the leverage has been used by investors to benefit from fluctuations in the exchange rate between the two countries.
The biggest advantage is, investors can use a maximum of leverage, exactly located in the FX market.
When you take advantage of the leverage, you can trade your account balance over the position.
Leverage is 50: 1 (50 times), 100: 1 (100-fold) or 500: is represented by a ratio as 1 (500-fold). Suppose you are holding a $ 1,000 Accounts. If you do business 500,000 dollars against the US dollar, 500: it will be to twist 1 leverage.
How then does it that can be 500 times the trading of funds.
It is the time to trade in the margin, because Forex Heart is providing short-term setting allocation funds for free.
As a result, it is possible to buy the currency amounts in excess of the account balance.
Without this money, we will not be able to only $ 1,000 scale of buying and selling at a time.
Forex Heart of high leverage
In all Accounts of Forex Heart, it is possible to trade up to 1,000 times the maximum leverage.
You can change between necessary evidence amounts of one week, never to expand during the overnight and on weekends.
Risk of leverage
By applying leverage, there is a possibility that raised a lot of profit in a relatively small initial investment.
On the other hand, to be carried out an appropriate risk management, it may increase many times the loss.
Forex Heart offers leverage width so that you choose the risk level of your choice.
At the same time, the leverage is close to 300 times, because the risk is quite large, we can not we recommend.
High leverage is likely to increase both the loss of great benefit.
For this reason, we are proposing to our customers to perform transactions in the risk tolerance range in our company.
The maximum risk of loss is determined by the amount of money deposited in the Accounts.
In other words, the customer does not have to suffer the loss of more than deposit amount.
In Forex Heart, by monitoring the use of margin and available margin, you can control the risk exposure in real time.
The combined use of margin and available margin is the total amount of the holding account.
Using Margin is the funds that need to deposit as a deposit in order to carry out the transaction. (For example, if you set the leverage of the account to 100 times, you need to maintain the 1% of the transaction value as margin requirements.)
And the available margin, is the balance of the holding account that can be used in order to absorb the take the additional position, or loss, will vary depending on the total amount of the holding account.
All responsibility to monitor the movement of Accounts is located in the customers but, Forex Heart so that the maximum risk that can take place does not exceed the total amount of your account, follow the policy of the margin call.
Total holdings account, as soon as the case was reduced to 50% of the margin needed to maintain the position of the outstanding, the margin call to warn you that there is no sufficient funds to position the maintenance of unsettled you do.
If the outstanding position of has reached a level that require additional payment, to customers who do business in the normal phone, we will contact you to that effect from our dealers.
The loss cut level, is held by the total level of open positions will be automatically closed.
Stop-loss level in the Standard account and nano-spread account is 20 percent.
* Leverage the specifications of each financial instruments, please refer to our spreads and conditions.
FX is a leveraged product, accompanied by a high risk of losing the investment principal at the maximum, you do not have may not be suitable for everyone. The risks associated with a good understanding, please be careful so that they are not invested with no money afford to lose. Please refer to the full risk disclosure of the Company.