Leverage

Leverage is an investment strategy of using borrowed money to increase the potential return of an investment. Leverage can also refer to the amount of debt a firm uses to finance assets. When one refers to a company, property or investment as "highly leveraged", it means that item has more debt than equity.

Margin Requirements

When trading, you must maintain a certain level of funds in your account (the necessary margin), to keep an Open Position. Your Margin is monitored in real time, providing you with the benefit of knowing where you stand at all times. Calculating and understanding your necessary margin requirements beforehand allows you to apply good risk management and avoid any unnecessary margin calls. Should your equity fall below the minimum amount, ACFOREX will automatically execute a Margin Call trade and close any open positions until your account equity exceeds the Maintenance Margin level requirement.”