FSMSmarts offers flexible leverage up to 1:400. Lessen your account margin with such feature
Forex Margin and Leverage are two of the most significant features needed before starting trades. However, these two are not similar
Margin: What You Need To Know
Margin is basically the act in which the trader makes a certain amount of deposit of their equity. Such act will secure a trading position, instead of having to place the whole.
What Is Leverage
Leverage in forex is conveyed in ratio such as 1:50. This permits traders to trade in greater volumes minus the need of having to place the needed collateral in its totality. Furthermore, leverage lets traders to expand their positions generally
Margin Call & stop outs
A Margin Call is a permitted margin level which can be around 40% or lower. With such, the Company is authorized but not accountable to shut down all its Client’s open positions as a result of a lack of free margin.
As for the Stop Out, it is the least permitted level of margin which can be around 20% or lower. With this, the trading program will instantaneously commence a halt of a Client’s open positions one after another. This is to further avoid additional losses that can lead to negative balance – an amount below 0 USD.
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