Leverage Ratio or Margin Requirement
Leverage provides you the ability to trade a larger amount with smaller initial deposit. The leverage ratio is a directly function of margin requirement.

For example if the leverage ratio for EUR/USD is 1:20, with a US$100 deposit, you can trade up to US$100 x 20 = US$2,000. The leverage ratio of 1:20 is equivalent to 5% (1/20 * 100%). Hence, to trade a notional amount of US$2,000 at 5% margin requirement, you need to put aside US$100 as margin amount to open this position.

Leverage ratios or margin requirements differ for different currency pairs determined by us from time to time.

Margin Call
Margin call occurs when your account equity falls below 100% of your margin used. You will need to make an additional deposit to resolve the margin call. Alternatively, you can close out some or all of your open positions to reduce your margin used. When your account is in margin call status, you are unable to open new positions but you can close out existing open positions.

E.g. you have US$5,000 in your account opening balance and you bought 100,000 EUR/USD position at 1.0650 for 5% margin requirement, your margin used will be US$5,325 (5% X 100,000 EUR X 1.0650 = US$5,325). Assuming the price falls to 1.0550 (100 pips), the unrealized loss is US$1,055. The account equity is now US$4,270 which is less than 100% of the margin used (US$5,325), your account is in margin call status.

Stop Out Level
In the event the account equity drops below 30% of the margin used at any point in time regardless whether an official margin call notification is issued to you, the system will automatically close out all open positions in your portfolio to prevent further loss to your capital.

Please be informed that the sell-out of all open positions is triggered by the system as market orders. You may lose more than your capital in some adverse market conditions.

Swaps
Swaps, often known as overnight interest or rollover interest, are interest payable or receivable for holding open positions overnight. You may pay or receive interest depending on the direction (buy or sell) and currency pair you rolled over to the next trading day at New York close. The interest amount is dependent of the notional amount you rolled over and the swap points quoted in pips.

Get a free demo account now to view our swap charges by holding some open positions overnight.

Minimum Lot Size
The minimum allowable notional amount is 0.01 of a standard lot or 1,000. There is no maximum lot size limit but the fill is subject to liquidity availability. Price slippages are expected for large notional amount.

Conversion Rates
Your profit and loss in various currencies will be converted to your account home currency using our end of day mid-rate.