About Margin
Margin is amount required to initiate and maintain a position in the market.
Margin is expressed as the percentage of position size and the fund in your trading account is used for margin for taking market positions. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000.
Dynamic Margin Percentage
The dynamic leverage available at Wealthway automatically adapts to the used margin and the volume traded on each financial instrument.
About Leverage
Leverage allows you to trade a much higher amount than the fund balance available in your account. It is expressed as a ratio, for instance 50:1, 100:1, or 500:1. Assuming that you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate 500:1.
We will monitor the leverage ratio applied to clients’ accounts at all times and reserves the right to apply changes to and amend the leverage ratio (i.e. decrease the leverage ratio), on its sole discretion and without any notice on a case by case basis, and/or on all or any accounts of the client as deemed necessary by Wealthway.
Wealthway Leverage
We will provide up to 888 times the deposit depending on your account type and our assessment. You also have the option to request increase or decrease of allowed leverage.
Margin requirements do not change during the week, nor do they widen overnight or at weekends.
Leverage Risk
Even though we offer very high leverage, we don’t encourage using them regularly as it entails heavy risk. Our team will help you find a suitable leverage ratio for you, just let us know if you need assistance.
Margin Monitoring
At Wealthway you can control your real-time risk exposure by monitoring your used and free margin.
Used margin depends on the leverage and if it is at 50:1, you need to keep 2% of trade value as margin. Rest of your fund will be free margin and it will fluctuate according to the profit/loss happening in your trading position. You can also use them to take other trades.
Margin Call
Although each client is fully responsible for monitoring their trading account activity, Wealthway follows a margin call policy to guarantee that your maximum possible risk does not exceed your account equity.
As soon as your account equity drops below 100% of the margin needed to maintain your open positions, we will attempt to notify you with a margin call warning you that you do not have sufficient equity to support open positions.
In case you are a client accustomed to telephone trading and we feel that you can’t maintain your open positions, you may receive a margin call from our dealers, advising you to deposit a sufficient amount in order to maintain your open positions.
Stop-Out Level
The stop-out level refers to the equity level at which your open positions get automatically closed. For Wealthway Ultra Low, MICRO and STANDARD trading accounts held by retail clients the stop-out level is 30%.