We will explain margin calls and forced stop-loss levels in Exness trading. There is also a possibility that you may suddenly be forced to make a loss cut. If you don’t understand the loss cut rules and what the loss cut level is, you won’t be able to get good results.
Loss cut rule
The loss cut rules of Exness are as follows. At overseas FX brokers, if the account balance becomes negative, a zero cut will be activated. There are no bonuses, but the system is very good as there is no margin call. In Exnes, 100% stop-out is a loss cut, so it is very easy to remember. This mechanism is also implemented by xmtrading, fxgt, gemforex, milton, hfm, axiory, iforex, bigboss, fbs, threetrader, easy markets, etc.
zero cut
According to the broker information on Exness, they use a zero-cut system. If any problem occurs and a loss of price occurs that is greater than the balance in multiple held positions, the management will decide and forcibly reset the balance to 0% (0 yen). Therefore, traders have no risk of incurring debt, so it is very safe. You can use it while taking advantage of maximum leverage. The service is top-level in the industry and has good specifications, but you need to check before making withdrawals. Check the balance with each tool.
Margin maintenance rate 0%
The margin maintenance rate, which is a forced loss cut, is 0% in the system. The official website also lists the loss cut level. The stop-out level is the margin maintenance rate when a forced stop-out is activated. When unrealized losses increase and the margin maintenance rate reaches the loss cut level, the position will be automatically closed to prevent further losses. As the number suggests, the loss cut level of 0% cannot be lower than this. You can trade with a large degree of freedom as it can withstand fluctuations in the market, including swap points.
Margin maintenance rate 30% or less
A margin call occurs when the margin maintenance rate falls below 30%. A margin call is a warning that your account is one step away from a loss cut when the margin maintenance rate falls below a certain level. When a margin call occurs, you will not be able to take on new positions. In other words, it is a warning message to traders, and there is a possibility of a total loss. There are no real campaigns, so you will basically be competing with just cash. Whether you are trading with a cent or a standard account, be sure to understand the market situation yourself while trading. It can also have an important impact on politics and the economy.
Loss cut = full deficit
I explained that the loss cut level with a margin maintenance rate of 0% means that while the margin can be fully used, if the loss is cut, it will be a full loss. Therefore, from the trader’s point of view, it will be a company with a high degree of freedom, but the fund management must be solid. The margin maintenance rate of 0% is less likely to be cut than other companies. In order not to cut losses, trade with a small position relative to the margin and a low effective leverage.
Loss cut level 0% for all stocks
In addition to foreign exchange currency pairs, Exness handles various investment products such as precious metals (gold), virtual currencies (Bitcoin), energy, and indexes, but 0% loss cut is applied to all financial products and functions without exception. It has been. However, keep an eye on the price movements and take measures such as placing a double-balance order or cutting your losses to protect your balance if your balance drops to less than half.
All account types loss cut level 0%
Exness has 5 account types, all of which have a 0% stop loss level. Therefore, there are no differences between accounts. You can rest assured that it is applicable and compatible with many accounts such as professional accounts, low spread accounts, and zero accounts. However, normally, when the margin maintenance rate falls below 50%, you should consider the next action. Add a new one to supplement your margin, or cut your loss. It is important to give yourself some leeway.
Margin call varies by account type
Margin calls have different maintenance rates set for different programs depending on the account type, as shown below. A warning is issued if the buying or selling direction reverses. Generally, margin calls are risk-free, but indicate that a stop loss is imminent. You can also choose to cut your margin at this point to prevent costs and losses from increasing. It is necessary to settle safely while watching domestic and international trading news announcements. In the end, sudden fluctuations may occur.
| Account Type | Margin Call | Loss Cut Level |
|---|---|---|
| Standard | 60% | 0% |
| Standard Cent | 60% | 0% |
| Low Spread | 30% | 0% |
| Zero | 30% | 0% |
| Pro | 30% | 0% |
a formula
Above, various terms such as balance and margin were mentioned, but they can be calculated using the following formula. The operating company calculates it based on the following. I will explain it briefly.
Margin Maintenance Rate (%) = Valid Margin ÷ Required Margin x 100
Equity = Balance + Valuation Gain/Loss (Exchange Gain/Loss + Swap)
Balance = Unused Free Margin + Used Margin Required
Free Margin = Equity Margin – Required Margin Used
Margin Required = Current Rate x Trading Volume ÷ Leverage
How to avoid loss cuts
The truth is that I want to avoid loss cuts as much as possible. If you want to avoid loss cuts, please refer to this. Depending on the environment, it can be efficiently avoided. If you are unsure, first lower the lot and trade from the minimum capital. There are no restrictions on the methods, so investors can trade according to their circumstances. Please refer to the following for details.
Deposit additional funds
If you are getting close to a stop-loss cut, there is a way to make it more bearable by adding margin. By securing a large amount of margin, you can increase the margin maintenance rate and reduce the risk of loss cuts. The more margin you have, the more freedom you have, which is advantageous.
risk reward ratio
There are many traders who end up taking a loss cut without cutting their losses. However, this often does not take into account the risk-reward ratio. When making an entry, decide where you will take profits and where you will cut your losses. It is said that a risk reward ratio of 1:2 or 1:3 is appropriate.
reduce leverage
Exness can be traded with unlimited leverage. If you always trade with unlimited leverage, the risk of loss cut increases. By intentionally trading with low leverage, you will be able to withstand even large unrealized losses. Please trade while adjusting the number of lots.
Benefits of Exness loss cut
In Exness, the loss cut level is 0, so in a sense it can be said that it is easier to fight. Traders have more discretion, so there are no restrictions on how they can play. Therefore, the following benefits will also occur, so let’s take advantage of them and fight.
tolerable
If the loss cut level becomes zero, it means that you can endure that much. If the price range that can be tolerated becomes larger when the market moves backwards after entry, then the market will reverse and the chances of picking up a winning trade will increase. Therefore, it will be a very advantageous point for traders because they can fight even if their losses increase.
Know the amount of loss
In Exness, since the loss cut level is zero in the first place, it is easy to grasp the amount up to the loss cut. After all, traders have the advantage of being able to endure until they lose all their funds, giving them more freedom in how they fight.
Unlimited leverage
Exness has zero loss cut level and unlimited leverage. With Exness, you can continue trading until your funds are almost zero. After all, you can also make gambling trades, so if you win with unlimited leverage, you have the potential to greatly increase your profits.
Open an account for free
You can open an account with Exness for free. Gambling trading is also possible, and there is a possibility that you can increase your money at once, so it is a highly recommended broker. I hope you can refer to the following articles.
コメント