Answers to common questions
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66.67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Answers to common questions
The biggest losing position is closed, leaving some free margin available for the trader to continue managing the exposure. Margin calls on MT4 is triggered when the margin level reaches 100%. Margins calls often occur due to overleveraging. Using more leverage can magnify your gains, but it can also magnify losses which will quickly deplete your usable margin. The more leverage you use, the faster your losses can accumulate. When you use excessive leverage, a few losing trades can quickly offset many winning trades.
Margin is a good faith deposit required to maintain open positions. In simple terms, it is a portion of your account equity set aside and allocated as a margin deposit. Is not consider a fee or a transaction cost. Margin requirements (per 1k lot) are determined by taking a percentage of the notional trade size plus a small cushion. A small cushion is added to help alleviate daily/weekly fluctuations.
A Margin Call is a possible event in which a trading account is having losing positions that put him/her on the verge of entering a negative balance in his/her trading account. In order to prevent such a turn of events, a margin call occurs. This is where some of the trader’s open positions are being automatically closed, MT4 automatically closed the biggest losing position thus preventing him from entering into debt.
Is a financial tool that lets a trader to increase their market exposure to a level that exceeds the actual investment. Traders use leverage as a way to magnify returns, however is important to notice that losses can potentially magnify as well. Most retail CFDs/FX Brokers offer 200:1 leverage on their trading. Zenfinex, being regulated by the FCA adheres to the ESMA limitations of 30:1 leverage for retail traders as it believes that the conservative use of leverage correlates with successful traders in the market.
Margin is a good faith deposit on open positions, leverage is the amount of market exposure of your positions in relation to your trading investment.
Leverage on your account will be set to 30:1. This is the maximum leverage that we are able to offer to retail traders due to FCA and ESMA imposed regulations. Professional traders can have their leverage increased to 100:1.
If you have a special request to change the leverage on your account you can contact us directly.
It is about 3.33% of the notional position size. For example if you place on MT4 a 0.10 EUR/USD position size and the pair is trading at 1.2000. The notional volume of this position is calculated as follows: 10,000 X 1,2000 = $12,000USD. Then $12,000 X 3.33% = $265 USD is the margin required for this position. It varies depending on each currency pairs, MT4 does the calculation for you, you can check how much margin is required on the margin field on your open positions within the terminal window on MT4.