Flexible Leverage from 1x to 500: 1
ASIAN GATE provides our customers with consistent margin requirements and flexible leverage from 1: 1 to 500: 1.
Margin Definition
Margin acts as collateral for losses incurred during a transaction.
Margin is expressed as a percentage of the position size (eg 5% or 1%). The only purpose of holding funds in your trading account is to secure sufficient margin. For example, with a 1% margin, a $ 1 million position requires a $ 10,000 deposit.
To place a new trading order, the margin level of your trading account must be 100% or higher. If it is less than that amount, the new order will be fully hedged in your trading account.
Leverage Definition
Leverage allows you to trade more positions than your account balance. Leverage is expressed as a ratio such as 50: 1 (50 times), 100: 1 (100 times) or 500: 1 (500 times). Suppose you have $ 1,000 in your trading account. If you want to trade $ 500,000 against the yen, you will have a leverage of 500: 1.
How can you trade 500 times more money? This is because ASIAN GATE provides free short-term quota funds when trading with margin. This allows you to purchase currency amounts that exceed your account balance. Without this money, you could only buy and sell $ 1,000 at a time.
Leverage of ASIAN GATE
Depending on the account type opened at ASIAN GATE, you can select the leverage in the range of 1: 1 to 500: 1. Margin requirements do not change during the week and do not increase at night or on weekends. In addition, ASIAN GATE accepts customer-default leverage change requests.
Leverage risk
By applying leverage, it is possible to make a large profit with a relatively small initial investment. On the other hand, without proper risk management, losses can increase many times.
ASIAN GATE offers a range of leverage so that you can choose your desired risk level. At the same time, we do not recommend it because the risk is significantly higher when the leverage is close to 500: 1.
Margin Monitor
ASIAN GATE allows you to control the impact of risk in real time by monitoring the margin used and the margin available.
The total amount of the holding account is the sum of the margin used and the margin used. Margin usage is the funds that must be deposited as deposits in order to carry out transactions. (For example, if you set the leverage of your account to 100 times, you need to keep 1% of the transaction amount as the required margin.) The available margin is to take an additional position or absorb the loss. It is the balance of the holding account that can be used for, and it varies depending on the total amount of the holding account.
Margin Call
You are entirely responsible for monitoring the movement of your trading account, but ASIAN GATE ensures that the maximum possible risk does not exceed your total account value. Follow the margin call policy.
As soon as the total amount of your account is reduced to 120% of the margin required to maintain an open position, you will have sufficient funds to maintain an open position. Make a margin call to warn you that there is no such thing.
Loss Cut Level
Loss Cut Level means the effective margin level at which open positions are automatically closed. When the effective margin of the trading account is less than 100% of the required margin, the loss cut level of the customer account is reached.