Margin serves as collateral to cover any losses that you might incur. Since nothing is actually
being purchased or sold for delivery, the only requirement, and indeed the only real purpose for
having funds in your FX account, is for sufficient margin.
Margin is expressed as a percentage of position size, for example 5% or 1%. On a 1% margin,
a position of USD 1,000,000 requires a deposit of USD 10,000.
Risk Warning : Leverage allows you to potentially make large profits from a relatively small
initial investment. However without proper risk management it can dramatically amplify your
losses. The leverage capacity Adbiter offers reflects our willingness to provide the traders with
the level of risk they wish to adopt, we do not however recommend trading close to 500:1
leverage as this engages a large amount of risk. Ultimately the choice is left to the traders to
make transactions that meet their risk tolerance.
Can I lose more money than I deposited?
No. Your maximum risk of loss is limited by the amount in your account.
Monitor your Margin: Our trading platform has been designed to effectively allow you to
control risk exposure in real time. This is achieved by monitoring your used and usable margin.
Used Margin is the amount of money you need to put down as a deposit to hold your trade.
Therefore, if your account is set to 100:1 leverage, you will need to set aside 1% of your trade
size as margin.
Your Usable Margin is the amount of money left in your account that is available to open
additional positions or to absorb any losses, and it fluctuates with your accounts Equity. Used
Margin and Usable Margin added together, equal your Equity.
Margin Calls: Our Margin Call Policy guarantees that your maximum possible risk is your
account equity. If the equity in your account drops to 85% of the margin required to maintain
your open positions, you will receive a margin call. This is a warning that your equity is not
enough to support your open positions. At this point you will have the option to deposit sufficient
money in order to maintain your open positions.
Customers are however fully responsible for monitoring the activity of their accounts.