This article will explain easyMarkets’ FX zero cut, loss cut adoption method, and leverage for your reference. When trading, you should be careful about loss cuts. Traders cannot always decide the timing of loss cuts as they like. Be careful, as loss cuts will be automatically performed if a certain threshold is exceeded.
account type
First, check the three account types separately. The rules for margin calls and stop loss differ depending on the account type. Other brokers have completely different settings and information for tools and currency pair names, so check in advance. easyMarkets allows you to trade virtual currencies and has high leverage, so it is recommended. The official website also lists what you can invest in. There are also calculation tools. It is a company that is ranked high in the popularity rankings, and the stop loss level is low, making it easy to make a profit, and its functions are well-received in Japan. If you have the knowledge, you can start trading while watching the rates carefully.
| Standard | Premium | VIP | MT5 | |
| Trade Style | DD | DD | DD | DD |
| Max Leverage | 400 | 400 | 400 | 2,000 |
| Trade Instruments | Foreign exchange precious metal energy Products/Stocks stock index virtual currency | Foreign exchange precious metal energy Products/Stocks stock index virtual currency | Foreign exchange precious metal energy Products/Stocks stock index virtual currency | Foreign exchange precious metal energy Products/Stocks stock index virtual currency |
| Commission | Free | Free | Free | Free |
| Spread | 2.0pips～ | 1.8pips～ | 1.0pips～ | 0.6pips～ |
| Lots | 100,000 currency | 100,000 currency | 100,000 currency | 100,000 currency |
| Min Lot | 0.01 | 0.01 | 0.01 | 0.01 |
| Scalping | 〇 | 〇 | 〇 | 〇 |
| Auto Trading | 〇 | 〇 | 〇 | 〇 |
| Hedge | 〇 | 〇 | 〇 | 〇 |
| Margin Call | 70％ | 70％ | 70％ | 70％ |
| Loss Cut | 30％ | 30％ | 30％ | 30％ |
| Zero Cut | 〇 | 〇 | 〇 | 〇 |
| Trade Tool | Original MT4 | Original MT4 | Original MT4 | MT5 |
| Base Currency | JPY USD EUR | JPY USD EUR | JPY USD EUR | JPY USD EUR |
| Min Deposit | 25$ | 2,000$ | 10,000$ | 25$ |
| Bonus | 〇 | 〇 | 〇 | 〇 |
What is margin call?
A margin call is a warning that a stop-loss cut is near. A margin call is simply a sign that a stop-loss cut is approaching, so there is no restriction on the trader. However, traders need to decide whether to cut their losses or put in additional funds. If this is left unaddressed, a loss cut will occur when unrealized losses increase further. Margin call is set at 70% for all account types.
What is loss cut?
Stopout means forced liquidation. Stopout cut is specified at 30% for all account types. Stop-loss cuts are settled regardless of the trader’s intention. There is no option at all as it will be a forced loss cut. The meaning of loss cutting is to protect the account balance. To talk about stop-loss cuts, it is necessary to talk about them in conjunction with margin money. This is because the loss cut is determined by the margin maintenance rate.
What is margin?
Margin is the trading capital that you deposit into your account. In FX, you deposit margin as collateral and trade with leverage. If the price fluctuates and goes negative, the margin determines the price range you can withstand. It depends on some fees, lots, and methods, but it is a good idea to hold a large amount until the contract is executed.
What is margin maintenance rate?
Margin maintenance rate is the ratio of required margin to the account’s effective margin. Margin maintenance rate = Effective margin ÷ Required margin x 100.
Stopout cut is activated at margin maintenance rate of 30%
easyMarkets’ stop loss is activated when the margin maintenance rate falls below 30%. This will be the same for all account types. If you hold multiple positions, the positions with the largest unrealized gains will be automatically liquidated in order.
How to avoid loss cut
Stop loss is something you want to avoid in the first place, but how can you avoid it? If you leave the negative, you will eventually go bankrupt. It depends on your style, but if it falls below your expectations, you should take action. If you have extra assets, the way you handle it will be different. For your reference, we will explain how to reset in the detailed market. For the first time, it depends on the content, but as a basic rule, it is wise to apply stop loss.
Loss cut
One way is to cut your losses to prevent losses from increasing in the first place. By cutting your losses, you will be able to protect your funds as the damage will only be minor. This means that it is better to take a look at the market situation and make a decision.
additional funds
There are ways to add additional funds. This largely depends on your ability to read the market. This is because if a major trend is occurring and the reversal continues, this additional capital will be meaningless. This is because even if you make an additional deposit, you may be subject to a forced loss cut.
both houses
If you get caught in a strong trend, you can avoid it by taking the opposite position. This is because the range that you can withstand increases as the opposite position becomes an unrealized profit. easyMarkets allows double-denomination.
What is zero cut?
Next, I will explain about zero cut. Zero cut is a system in which the FX broker will cover the loss if the account balance becomes negative at some point. In other words, it is a guarantee system that the account balance will always be zero. easyMarkets also uses zero cuts, so traders can trade with confidence.
No margin call will occur
easyMarkets, which uses zero cut, does not require margin calls. This means that traders do not have to risk incurring debt. You will not lose more than the amount you deposited, and you can avoid debt risk.
There are only benefits
Zero cut basically only has advantages. There are no disadvantages, so please rest assured. By the way, our company manages funds separately. The industry is also regulated, so customers’ funds will not be used without permission later. There is no trust protection.
Activation conditions
So, in what order do the above-mentioned items take effect? It is as follows. They are triggered under the corresponding conditions while buying or selling in the market. It is better to know when they will take effect for risk management purposes. You can fight unlimitedly with high leverage, but they often move depending on the time of day and news or indexes. Please be careful of the handling and levels of stock indexes, gold, etc.
1.Margin call
A margin call will be triggered when the margin maintenance rate falls below 70%. A margin call is not a constraint, but it does serve as a warning, giving the trader the opportunity to decide whether to add capital or take a loss.
2.Loss cut
A stop-loss occurs after a margin call. The stop-loss cut is automatically triggered when the stock falls below 30%, so it is triggered regardless of the trader’s intention. When the margin maintenance rate falls below 30%, positions with the largest unrealized losses will be settled first.
3.Zero cut
When this loss cut occurs, zero cut is automatically activated. The zero cut is set off against the bonus, so as long as there is a bonus, the zero cut will not be activated. Zero cut will be activated if the amount becomes negative even after including the principal and bonus. Therefore, if the negative amount can be compensated with the bonus balance, the zero cut will not be activated.
EasyMarkets allows you to open a free account
EasyMarkets allows you to open an account for free. We also offer our own platform and VIP account, and we also provide excellent support. Users will need two documents to complete the registration process: an identity verification document and an address verification document. Please try opening an account. Frequently asked questions are also available on the official website.
Deposit and withdrawal services
Currently, we accept payments from bank transfers to credit cards for deposits and withdrawals. It will take a few days to complete the reflection. Please note that the minimum deposit amount is set at $25. The maximum leverage is over 400x, and with MT5 you can trade with a leverage of 2000x, so you can trade with small amounts. It is attractive because there is a wide variety of different products such as Bitcoin, stocks, precious metals, and foreign exchange. You can also make new trades with currencies that other companies cannot.
Few restrictions on trading methods
The latest version allows trading on both sides, scalping trading, and even system trading using automated trading (EA) tools. For more information on how to use it, please contact the management support and ask via chat. They will answer depending on your purpose. There are many promotions, cashbacks, and limited campaigns that are held from time to time, so you can receive bonuses on eligible accounts.
Holds financial license
easyMarkets holds a financial license, so it is safer and more reliable than other companies. We offer unique option trading that other companies, such as easytrade, do not offer, and it is usually possible to trade using apps. Basic Metatrader is provided, so you can fully use them.
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