Margin maintenance is monitored in real time to ensure that the maximum risk does not exceed the account balance.
The dynamic leverage of your trading account will vary depending on the margin used to trade and the amount deposited, as well as the valuation gain or loss. This means that as the volume of trades increases, the margin requirement increases in proportion to the dynamic leverage of each instrument.
SvoFX allows you to monitor your risk exposure in real time by monitoring margin usage and margin surplus.
The combination of working capital and surplus margin is the effective margin of the account. Working margin is the money that needs to be held as a deposit in order to execute a trade. (For example, with 100x leverage, you must maintain 1% of the trade amount as margin requirements. Margin is the balance available to take additional positions or to absorb losses, which may vary depending on the trading conditions.
Although it is your responsibility to monitor the movement of your trading account, SvoFX follows a policy of margin calls to ensure that the maximum possible risk does not exceed the total value of your account.
If the margin maintenance rate of an account is below the company’s stated level, we will make a margin call to warn you that there are not enough funds to maintain the open positions.
The loss-cut level is the margin maintenance rate at which a position is automatically settled. If the margin maintenance rate of an account falls below the Company’s stated level, a loss-cut will be executed to automatically close the open positions.
Profitability and Optimality
Optimally balanced and sound leverage to maximize profitability
Leverage allows you to trade positions that are greater than or equal to your account balance. Leverage is expressed in ratios such as 10:1 (10x), 50:1 (50x) and 100:1 (100x). Let’s say you have $1,000 in your trading account. If you want to trade on the Japanese Yen at a size of $100,000, you will have 100:1 leverage.
SvoFX has an optimal capital and trading balance of 1-100x, from short to long term asset management, which is ideal for novice and expert traders alike.
Risk of Leverage
Leverage can allow you to make a large amount of profit with a relatively small initial investment. On the other hand, without proper risk management, it can increase your losses many times over.
SvoFX offers a leverage range of 1-2000x, but the higher the leverage, the more pressure you put on your margin maintenance and the higher your risk level. We recommend that you plan ahead and trade with plenty of time to spare.