Forex Leverage and Margin
Requirement

What is Margin in Forex?

Margin represents the funds required in your account to execute a leveraged trade. The tied-up amount designated as ‘margin requirement’ is released for use once a position is closed.At Defcofx, we provide leverage of up to 1:2000, accompanied by robust risk monitoring and perpetual negative balance protection measures. Gold account holders enjoy 1:500 leverage, while Silver account holders can leverage up to 1:2000.For those seeking 1:2000 leverage with larger account sizes, opting for the silver account is advisable. Defcofx ensures 100% negative balance protection, safeguarding clients from any liability in the event of the account going into the negative. In such cases, the company resets the account to zero.To calculate margin, divide your trade size by your leverage. For instance, with a trading leverage of 1:100 and an open trade of $10,000, the margin requirement would be 10,000/100 = $100.

Review Forex & CFD Margin Requirements

  • Customers are required to consistently uphold the Minimum Margin Requirement for their Open Positions.
  • Defcofx reserves the authority to liquidate any or all Open Positions if the Minimum Margin Requirement is not sustained.
  • Margin requirements may undergo alterations at any time. To mitigate confusion, Defcofx will make its best effort to notify customers of anticipated changes in Margin Requirements through email and the messaging system of the trading platform at least one week prior to the implementation of such changes.

Margin Calls

  • “The trading platform will issue a warning to customers when their margin reaches 50%. As a precaution, customers are encouraged to regularly log into their trading platform to monitor their Equity and maintain sufficient margin.
  • Moreover, Defcofx may, on occasion and to the best of our efforts, communicate with customers, urging them to deposit additional collateral to secure their obligations to Defcofx. It is essential to note that any request for additional margin does not establish a precedent for future calls, nor does it serve as a waiver of liquidation rights by Defcofx

What is Leverage in Forex?

Leverage plays a crucial role in conjunction with margin when engaging in market trading. Defcofx, we provide the highest leverage in the forex industry, enabling our clients to trade with greater exposure using less capital.

The leverage, expressed as a ratio or percentage, allows you to invest more funds than initially deposited in your trading account. For instance, with a 1:1000 leverage, you can control a $1000000 investment with just $1,000, resulting in trading funds 1000 times greater than your deposited amount.

You have constant visibility into your free and used margin. Our robust margin call policy ensures that our clients’ balances remain within safe exposure limits.

Important to note: Leverage remains consistent across all types of accounts, regardless of the account size.

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