Forex4money offers leveraged (margin) trading service for a variety of financial instruments, including Forex, precious metals, commodities and index based CFDs. This makes it possible for you to trade significant positions with a relatively modestly-sized account.
"Margin" acts as collateral to cover any losses that you might incur, while at the same time allowing you to hold a position much larger than your actual account value. This means, you get an opportunity to generate significant (relative to the amount invested) profits.
Leverage is a double-edged sword. While it can dramatically increase your profits, it can also just as easily amplify your losses. Excessive leverage can cause a few losing trades to offset the gains from many winning trades. Leveraged trading carries a high degree of risk and may not be suitable for all investors.
As an Forex4money account holder, you’re entitled to our Negative Balance Protection program, which means that you can never lose more than you have deposited; nonetheless, a small market movement can result in a substantial loss of funds. Our Trading Platform automatically calculates your margin requirements before executing any order, and checks the level of available funds before any request to withdraw funds is made.
The margin requirements become relevant, whenever you wish to increase Exposure in the account, either by opening a new trade, or by requesting to withdraw funds, while you keep open positions in the account. Specific margin requirements take into account the potential risk of the open positions, based on volatility, liquidity and pricing availability, of any given asset. This is the reason for increased margin requirement during and around trading breaks.