Trade with explained leverage details
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MARGIN TRADING INVOLVES SIGNIFICANT RISK TO YOUR INVESTED CAPITAL
or try a FREE Demo Account
MARGIN TRADING INVOLVES SIGNIFICANT RISK TO YOUR INVESTED CAPITAL
In FX trading, it is possible to trade many times more currencies than cash on hand by making "leverage" to cash on hand (margin). By controlling transactions while controlling this leverage, it is possible to gain opportunities to secure a large profit from money management with high financial efficiency.
In the case of cash on hand 1000 EUR (comparison of leverage 'none' and '100 times')
The transaction feasible amount when dealing in EUR, USD is 1.2 as follows with the cash on hand (margin) 1.200 USD and 100 doubling leverage.
(Assuming 1 EUR = 1.2 USD)
1200 USD × 100 times ÷ 1.2 (EURUSD rate) = 100,000 EUR
On cash on hand 1,200 USD, leverage 100 times (assuming 1 EUR = 1.2 USD)
In leveraged transactions, it is possible to operate a large amount of cash on hand, so the higher the leverage, the greater the asset value of the account will fluctuate even with small market movements I will.
Please check the following example of profit and loss simulation.
Gains / losses when buying orders with cash on hand 100,000 yen, 1 dollar = 100 yen
Leverage value * | 1 times | 10 times | 20 times | 30 times | 50 times | 100 times | 200 times | 500 times |
---|---|---|---|---|---|---|---|---|
Transaction amount | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 | $ 1,000 |
Gains $ 1 = 101 yen when it becomes |
+1, 000 yen | +10,000 yen | +20,000 yen | +30,000 yen | +50,000 yen | +100,000 yen | +200,000 yen | +500,000 yen |
Losses $ 1 = 99 yen when it becomes |
-1, 000 yen | -10,000 yen | -20,000 yen | -30,000 yen | -50,000 yen | -100,000 yen * No loss beyond the margin will not occur |
In the US dollar yen trading, if exchange rate fluctuation of 1 yen occurs, the profit and loss ratio for 100,000 yen margin is 10% at 10 times lever leverage, 100 times leverage, 100,000 yen equal to margin . In this way, the higher the leverage, the larger the transaction fee will be, so the profit / loss ratio will increase if you consider the margin as the investment principal. (Transaction fees are not taken into account.)
* With TTCM, the loss is not expanded beyond margin (deposit amount) by stop loss guarantee and zero cutting method.
In this way, since leverage transactions allow large amounts to be traded to cash on hand (former hand), the higher the leverage, the greater the value of the assets of the account fluctuates even if the exchange rate is small You will be doing. In the event that the market fluctuates in a direction disadvantageous to the position held by the customer, there is a possibility that the position held by the customer will be forcibly settled in order to prevent the loss of the customer. While leverage can gain great profit with small funds, there is also the possibility of losing all deposit funds.
TTCM uses "1 time", "10 times", "20 times", "30 times" "50 times", "100 times", "200 times" and "500 times" in order to efficiently use less money for investment You can select 8 types of leverage value.
The leverage value that can be set differs depending on the margin balance
TTCM sets an upper limit on the leverage value that can be set by the customer's margin balance in order to protect your valuable funds from sudden fluctuations in the market.
Margin balance | 1 times | 10 times | 20 times | 30 times | 50 times | 100 times | 200 times | 500 times |
---|---|---|---|---|---|---|---|---|
$0~$5,000 | ||||||||
$5,001~$50,000 | ||||||||
More than $50,00 |
For example, if the "500 times" setting leverage account balance of your customer becomes $ 50,001 or more, the leverage setting will be changed 400 times according to our company regulations. In order to avoid this, please usually report to the customer from the customer support desk, move the funds to another account, or withdraw some funds, etc. with a 24-hour time limit. From the perspective of protecting your valuable funds from sudden fluctuations in the market and from the viewpoint of fairness concerning the supply of market liquidity to all customers, accounts that cost more than $ 50,001 due to sudden market fluctuations Please note that we may rarely change the account holder 's reply without waiting 24 hours when it is necessary to change the level of the account.
MARGIN TRADING INVOLVES SIGNIFICANT RISK TO YOUR INVESTED CAPITAL