When trading using leverage, the trader borrows funds from the broker to be able to trade at higher points. Since the capital credited to the account used as collateral on which to base credit, margin and stop outputs are used for more effective risk management strategies that limit the risk of a negative account balance. Margin call is the first indicator that informs the trader about the achievement of the minimum points of the margin level on the account.
What is margin
Your margin is monitored in real time, providing you the advantage of awareness of one's position at any time. The maintenance margin is the minimum amount of capital required to maintain open positions. If your capital falls below the minimum amount, WSSolution will automatically perform a Query of a margin call and close all open positions, until the equity of your account does not exceed the statutory requirement of minimum maintenance margin.
Leverage is the mechanism by which margin deposits CFDs controls the asset a higher value, providing great trading results and higher profits. Please note that margin requirements generally increase in proportion to the value of the underlying trading of the asset. WSSolution provides a flexible range of leverage, where investors can choose to trade using 1: 100 to 1: 400. Leverage is the mechanism that is used to multiply the profits; however leverage can also multiply losses. Thus, it is important that a trader fully understands the proper use of leverage and the risks associated when trading with leverage.