Margin is defined as the amount of money required in your account to
place a trade using leverage. The amount that is required to be tied up
as a security is called 'margin requirement' and will be free to use
once a position is closed.
At Stock Trading Capital we offer leverage up to 1:2000 along with proper
perform risk monitoring and negative balance protection methodologies at
1:2000 leverage will stay up to $20k account size in the standard
account like FIXED AND ECN and after that, it will down to 1:1000 and
further drop down to 1:500 after $50k account size.
But if you want to use 1:2000 leverage to the bigger account size you
should take VIP in this account 1:2000 leverage will stay up to $250k
and after that go down to 1:1000 until $500k and further drop down to
Stock Trading Capital offer 100% negative balance protection. It means if the account
went into negative the company will reset the account to zero and the
client will not be liable to pay the negative.
Margin can be calculated by dividing your trade size by your
leverage. For example, your trading leverage is 1:100 and you have an
open trade for $10,000, the margin requirement to support that trade
would be 10,000/100 = $100.
Please review this page to learn about Forex and CFD Margin Requirements.
Customer must maintain the Minimum Margin Requirement on their Open Positions at all times.
Stock Trading Capital has the right to liquidate any or all Open Positions whenever the Minimum Margin Requirement is not maintained.
Margin requirements are subject to change at any time. In order to
prevent any confusion, Stock Trading Capital, at its best effort, will inform
customers about any projected changes on Margin Requirements by email
and via the messaging system of the trading platform at least a week
before changes are implemented.
Customers will be warned by the trading platform, at 50% margin
level, that their position will start liquidating at 20% margin level.
Customers will only get an automatic margin call notification if they
are logged into their trading platform. Therefore, customers are advised
to log into their trading platform on a regular basis to ensure they
monitor their Equity and any relevant notifications accordingly.
Stock Trading Capital may also alert Customers by phone-call and/or by email
that they are getting close to automatic trade liquidation of their
positions. The Customer will be advised to deposit additional funds into
their account or instructed to reduce/close out current open positions.
In addition, Stock Trading Capital may, from time to time and at our best
effort, contact Customer and request that Customer deposit additional
Collateral to secure Customer's obligations to Stock Trading Capital. Any call
for additional margin shall not be deemed precedent for future calls
nor future waiver of liquidation rights by Stock Trading Capital.
Leverage is also a very critical factor that is associated with
margin when trading the markets. We offer the highest leverage in the
forex industry which helps our clients to trade more with less money.
A leverage amount or percentage gives you the opportunity to invest
more funds than you initially placed in your trading account.
For example, with a 1:200 leverage you can manage a $200,000
investment with $1,000, meaning that the trading funds would be 200
times greater than your deposited amount.
You can monitor your free and used margin at all times. Our margin
call policy ensures and guarantees that our clients' balances will not
be over exposed.
Note: Leverage does change according to the account size for all types of accounts and the details are given below.
ECN AND FIXED: The maximum leverage will be 1:2000 and this
leverage in these account types restricted to the account size upto
$20000. Above $20000 to $250000 the leverage will drop down to 1:1000
and further drop down to 1:500 above $250000 with no further
VIP: The maximum leverage will be 1:2000 and this leverage in
this account type restricted to the account size upto $250000. Above
$250000 to $500000 the leverage will drop down to 1:1000 and further
drop down to 1:500 above $500000 with no further restrictions.