Margin and Leverage
Margin is the amount of funds required in your account to open and maintain a position.
Margin
Margin is defined as the amount of money required in your account to place a trade using leverage. The amount that must be set aside as security is referred to as the ‘margin requirement’ and will be free to use once a position is closed.
BoForex offers leverage up to 1:2000 along with effective risk management and negative balance protection at all times.
Leverage of 1:2000 is available for account sizes up to $20k in standard accounts, such as FIXED and ECN. After this, it will decrease to 1:1000, and further drop to 1:500 for account sizes exceeding $50k.
However, if you wish to maintain 1:2000 leverage for larger account sizes, you must opt for the VIP account. In this account, 1:2000 leverage will remain available up to $250k, after which it will decrease to 1:1000 until $500k, and further drop to 1:500 beyond that.
BoForex provides 100% negative balance protection. This means if your account balance goes negative, the company will reset your account to zero, and you will not be liable for the negative balance.
Margin can be calculated by dividing your trade size by your leverage. For example, if your trading leverage is 1:100 and you have an open trade of $10,000, the margin requirement to support that trade would be 10,000/100 = $100.
Please review this page to understand the margin requirements for Forex and CFD trading.
Customers must maintain the Minimum Margin Requirement on their open positions at all times. BoForex reserves the right to liquidate any or all open positions if the Minimum Margin Requirement is not maintained.
Margin requirements are subject to change at any time. To prevent confusion, BoForex will make its best effort to inform customers of any anticipated changes to margin requirements via email and through the messaging system of the trading platform at least one week before the changes are implemented.
Margin Calls
Customers will be warned by the trading platform when their margin reaches 50%. Therefore, customers are advised to log into their trading platform regularly to monitor their equity and ensure they maintain sufficient margin.
In addition, BoForex may, from time to time and to the best of its ability, contact customers and request that they deposit additional collateral to secure their obligations to BoForex. Any request for additional margin shall not be considered a precedent for future margin calls nor a waiver of liquidation rights by BoForex.
The client is responsible for overseeing their account’s free margin and ensuring that an adequate margin is maintained for ongoing trades. Please note that we do not send SMS or email alerts regarding liquidation warnings; these occur automatically when the margin level reaches 20%. BoForex bears no responsibility for this matter.
Leverage
Leverage is a critical factor associated with margin when trading the markets. At BoForex, we offer the highest leverage in the forex industry, enabling our clients to trade more with less capital.
Leverage allows you to control a larger investment than the amount you initially deposit in your trading account. For example, with a leverage ratio of 1:200, you can manage a $200,000 investment with just $1,000, meaning your trading funds are 200 times greater than your deposited amount.
You can monitor both your free and used margin at all times. Our margin call policy is designed to ensure and protect our clients’ balances from being overexposed.
Note: Leverage varies depending on the account size for all account types. Details are provided below:
ECN and Fixed Accounts:
The maximum leverage is 1:2000, available for account sizes up to $20,000.
For account sizes between $20,000 and $250,000, leverage drops to 1:1000.
For account sizes above $250,000, leverage drops further to 1:500 with no additional restrictions.
VIP Accounts:
The maximum leverage is 1:2000, available for account sizes up to $250,000.
For account sizes between $250,000 and $500,000, leverage drops to 1:1000.
For account sizes above $500,000, leverage drops further to 1:500 with no additional restrictions.