Margin And Leverage
Forex means "Foreign Exchange Margin Trading", and it is important to understand the meaning of "Margin" when trading Forex.
Margin trading is a system that allows trades to be made without the full amount of funds required for the original transaction.
Margin trading is one of the most important features of Forex, which means that you can trade up to 100~300 times the margin deposited to the Forex company, which is called leverage. Leverage is a mechanism that enables you to trade big even with small amounts of capital.
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What Is Margin
A certain amount of cash deposited into an account as collateral for FX trading is called "Margin".
The required margin can be calculated from the following formula.
Required Margin
(transaction currency amount× Quantity ÷ Leverage) × Conversion rate to account base currency
If you use leverage of 10% to 20% of the amount you want to trade as margin, you can make a large transaction with a small amount of money. The biggest feature of FX is that you can conduct transactions with good financial efficiency.
What Is Leverage
With Forex, even if you have a small amount of cash in hand (margin), you can trade a lot more money than you have with leverage, and you can expect a large return.
For example, with 10x leverage, the amount of money you can trade is 10 times $10,000, which is $100,000.
Leverage makes your investment more efficient and allows you to earn the maximum profit for a small amount of money.
In addition, the risk of compulsory loss-cutting increases as the leverage becomes higher, but we have adopted a zero-cutting system, so even if the margin balance becomes negative by any chance, there is no need for additional deposit.
You can manage your leverage with low risk and peace of mind.
Trading At 300x Leverage, The Highest Level In The Industry
One of the most attractive features of Aroon is the 300x leverage, which means you can trade for $300,000 on a $1,000 deposit.
In this way, the high leverage allows you to invest small amounts of money with low risk without any restrictions on accounts or trading methods.
The high leverage tends to give the impression of high risk, but in fact it is quite the opposite, low risk.
For example, let's take the $300,000 deal we mentioned earlier.
Margin of $1,000 with 300x leverage
Margin of $30,000 with 10x leverage
In this way, the higher the leverage, the less margin is required to trade the same amount of money. As a result, the higher the leverage, the lower the risk.
In addition, the automatic loss-cutting level is set at 20% of the margin maintenance level, which allows for a greater tolerance for loss-cutting. This is another factor that can be advantageous for traders.
Furthermore, in the unlikely event that the margin balance (account balance) becomes negative, there will be no additional deposit required. When you make an additional deposit, we will reset your account balance to zero to reflect the amount of your deposit.
You can use active leveraged management with confidence, as there is no additional deposit required.
We offer an attractive trading environment that allows you to concentrate on trading with peace of mind, with high leverage and a zero cut system with no additional deposit required, Even those who are considering Forex or Forex beginner can trade with peace of mind .
