All account information is updated on a tick-by-tick
basis giving traders a complete view of their
account activity. The most lenient margin requirement
is .5% on both standard and mini accounts. Currency traders have the ability to select the degree of leverage they wish to use. Margin requirements are fixed for both intra-day trading and for positions held overnight. Keep in mind, without proper risk management, this high degree of leverage can lead to large losses as well as gains.
Based on each
trader's margin requirement, the FX Trading
Station will calculate in real time both the
funds needed to maintain current positions (Used
Margin) and the funds available for available
for taking new positions (Usable margin). If
the equity in the account drops below the margin
required to maintain the open positions, a margin
call will occur and some or all open positions
will be closed by the dealing desk at the market
price. This provides protection against accounts
falling below the account equity, particularly
in volatile, or fast moving markets.
