Leverage & Margin - Trading on Margin
Leverage trading, or trading on margin, means you aren't required to put up the full value of the position. As a result, you can open a significantly larger position than you would be able to if you needed to fund your trade in full. Trading on leverage increases your potential for profit, but also increases your risks.
Forex trading offers leverage up to 50:1. This means that for every $1 in your account, you can trade $50 worth of a position.
FOREX.com: No debit balances, no margin calls
At FOREX.com, your risk is limited to funds on deposit. There are no margin calls at FOREX.com. You need to maintain sufficient funds on your account to keep your positions open, and you will not be able to open larger positions than can be supported by your account balance. If your account falls below the required level to maintain your position(s), we will automatically close out all positions to help ensure that you can't lose more money than you have in your account. FOREX.com’s Negative Balance Protection protects you up to 50,000 of the base currency of your account.
More leverage means more opportunity - and more risk
Trading using leverage offers significantly increased profit potential, but it is important to remember that it also means significantly increased risk. While contingent orders may not necessarily limit your losses, actively managing your positions using limit and stop orders allows you to set the maximum loss you are prepared to take on any one position. Learn more about using stop losses and managing risk on your account in our online training courses or visit our FAQs.
