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Spread and Margin Back To: Forex Education, Resources & Tools
MODE OF DEALING:
ORDER SIZES: On the trading platform all trades are executed in
standard sizes of 100,000 base currency per one lot. There is no
maximum trading volume on the Trading Station, however, for trading
sizes larger than $10,000,000 traders must request a quote over the
telephone. Forex enables currency trading to be conducted on a highly leveraged basis. Every client is able to select the degree of leverage or gearing that the client wishes to employ in trading. Unless the client specifies otherwise, the set leverage level is the most lenient requirement. The requirements for leverage vary with account size. • Accounts Under $50,000 Minimum $1,000 in equity per open lot (1%) • Accounts $50,000 - $200,000 Minimum $2,000 equity per open lot (2%) • Accounts $200,000 - $500,000 Minimum $3,000 equity per open lot (3%) • Accounts Over $500,000 Minimum $5,000 equity per open lot (5%) Equity is the value of funds in the account adjusted for floating profit/loss on open positions. One lot has an approximate market value of $100,000. A requirement of $1,000 in equity per open lot is, therefore, approximately equal to a maximum leverage or gearing of 100:1. Dealers constantly monitor the leverage levels of all accounts. Although we make no guarantees, the dealing desk may attempt to contact clients whose accounts are near the minimum equity requirement for their open positions. Clients are fully responsible for monitoring the activity in their accounts. In the event that an account exceeds its maximum allowable leverage, the dealer has the right to liquidate all positions in the account.
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