This article explains FXGT’s forced loss cut level, margin maintenance rate, and calculation method. If traders do not know anything about stop-loss cuts, their positions may be suddenly liquidated, which is quite disadvantageous for traders. You should know how to calculate it.
FXGT has a maximum leverage of 1000x
FXGT has a maximum leverage of 1000x. We are one of the top FX company operators. Furthermore, zero cut is adopted. Since there is no margin call, there is no risk of debt. High leverage and loss cut levels are set, so it is safe to hold positions. You can trade a lot with MT4 and MT5.
You can deposit and withdraw money from credit card or bank
On the official website, new transfers and remittances are possible from credit cards, debit cards, bitwallets, virtual currencies (Bitcoin), domestic and overseas banks, etc. You can deposit even large amounts. Identity verification is also done well, and operations can be done from the app as well. Limited bonuses and automatic trading are also possible, and leverage is high.
Complete trading platform
The trading platform is also extensive. We also offer free, no-download terminals, demos, and real live accounts. This is an opportunity because you can fully utilize the functions on the screen. You can place orders while keeping an eye on the price of the currency pair. Once you get used to it, you can increase the number of lots. Start by holding back and starting small. There is also a compulsory loss cut in trading, so be sure to keep the maintenance rate in mind when trading FX.
Full of unique currencies
The information has a high proportion of unique currencies such as synthetics and NFTs, and it is possible to invest in more stocks than the standards of other companies (XM, GemForex, Tradeview, TitanFX, Axiory, BigBoss, Exness, etc.). The pips range is a little wide, but it has high leverage, so you can invest from a small amount by keeping your funds (credit) low. There are many different methods that are allowed, such as scalping, double trading, and automated trading.
What is loss cut? What does it mean?
Loss cut refers to the point at which the position is closed forcibly. Loss cut, which is said to be the most avoided in FX. Loss cut is a mechanism that is fixed when the margin maintenance rate reaches a certain line so that the trader’s loss does not increase. Therefore, you can see that the loss cut is closely related to the margin maintenance rate. Traders need to operate while avoiding loss cuts.
Loss cut level for each account type
In fact, in FXGT, the loss cut level differs depending on the account type. Leverage is also involved in FX, but the compulsory level is as follows. Be especially careful when trading using methods such as automatic trading, as you will be leaving your money unattended.
| Type | Loss Cut |
| Mini | 20% |
| Standard | 20% |
| Crypto Max、Pro、ECN | 40% |
Account types for professional traders are more susceptible to loss cuts. On the other hand, standard accounts and mini accounts, which are account types for beginners, have specifications that can withstand this to some extent.
Margin maintenance rate
The margin maintenance rate is a concept that you absolutely have to know in order to avoid loss cuts. The margin maintenance rate can be obtained by the following calculation.
Margin Maintenance Rate (%) = (Effective Margin ÷ Required Margin) x 100
In FXGT, loss cut is triggered when the required margin falls below 20% to 40%. The loss cut level differs depending on the account type. Let’s know the loss cut line of the account type you have now. FXGT’s loss cut line is 20% for mini accounts and standard + accounts, and 40% for professional accounts, ECN accounts, and Crypto Max accounts.
margin requirement
Looking at the above formula, there is a margin requirement. How exactly is this calculated? You can see that it depends on the number of lots and leverage, as well as the exchange rate.
Required Margin = Exchange Rate x Number of Lot ÷ Leverage
Equity
Looking at the above formula, there is something called equity. How exactly is this calculated? The effective margin amount should be added to the margin if there is a profit, and subtracted from the margin if there is a loss. If you have not made an entry, your equity remains the same.
Effective Margin = Margin + Current Profit and Loss
margin call
Also, the word that you should know along with these is margin call. A margin call is a system that informs traders that the margin maintenance rate is approaching the loss cut line. In other words, it is a warning that the loss cut is approaching. If this warning comes, it means that the loss cut is near, so be careful.Margin calls also vary depending on account type.
| Mini | 50% |
| standard | 50% |
| Crypto Max口座 | 70% |
| PRO | 50% |
| ECN | 70% |
Zero cut system
Global GT, FXGT, and even Crypto GT have adopted the zero cut system. Even if the balance becomes negative, it is okay. The zero cut system is a user relief system that returns the negative amount to zero when the account balance becomes negative. Therefore, users have the advantage of being able to trade with peace of mind.
Activation order
Margin call, loss cut, and zero cut each have different conditions, so the timing of their activation is also different. If the unrealized loss becomes large in a trade, in what order will they be activated?
①Margin call
The first thing to happen is a margin call. A margin call does not pose any particular risk, but it does serve as an alert to let you know that a stop-loss cut is near. When this happens, the stop-loss is near and the user has to decide what to do.
② Loss cut
Forced liquidation will occur if the unrealized loss becomes larger than the timing when the margin call was issued. This becomes a loss cut, and the user is forced to cut their losses. Please note that this cannot be controlled by the user.
③Zero cut
If there is a major market fluctuation, your account balance may become negative instead of a loss cut. In this case, there is no need for the user to pay. FXGT will compensate all the negative amount and make it zero.
Loss cut avoidance method
Loss cut can be avoided if you want to. What is the best way to do that? We recommend that you do the following:
Additional deposit
By making an additional deposit to the trading account before the loss is cut, it is possible to avoid forced loss cuts, but this can be said to be a life-prolonging measure. Therefore, it is recommended not to make additional deposits if you are caught in a strong trend. Since there is a possibility of forced loss cut before the deposit is reflected, this point must also be considered.
Stop loss before loss cut
In the first place, by cutting the loss before going to the loss cut point, you can escape with a shallow wound. However, if you endure a little more, you may be able to go backwards and make a profit, so the ability to read the flow of the market is the key.
leverage
It is also important to be aware of leverage. Leverage can aim for more profit than the original capital, but it can also be the opposite, and it can be a total loss. It is important to have enough room in your account balance when trading with high leverage.
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