Margin and Leverage

Margin & Leverage

Leverage up to 1:500

Flexible Leverage
up to 1:500

Real-Time Risk
Exposure Monitoring

Negative Balance

No Changes in margin overnight or at night

Flexible Leverage of up to 1:500

Clients at Amalga have the flexibility to trade by using the same margin requirements and leverage up to 1:500.

About Margin

Margin is simply a portion of your funds that is set aside from your account balance to keep your trade open and to ensure that you can cover any credit risks arising during your trading operations.
Margin is expressed as a percentage (%) of the “full position size”. On a 1% margin, for instance, a position of $100,000 will require only a deposit of $1000.
The margin level in your trading account needs to be equal or above 100%; otherwise, the new trades will result in your trading account being fully hedged.

About Leverage

Using leverage means that you can trade positions larger than the amount of money in your trading account. Leverage amount is expressed as a ratio, for instance 50:1, 100:1, or 500:1.
At Amalga, we offer every client a free short-term credit allowance wherever traded on margin which enables you to purchase an amount that exceeds your account value.

Leverage Risk

By using leverage, even from a relatively small initial investment you can make considerable profit but on the other hand, your losses can also become drastic if you fail to apply proper risk management.
Therefore, at Amalga, we provide a leverage range that helps you choose your preferred risk level and do not recommend trading close to a leverage of 500:1 due to the high risk it involves.

Margin Monitoring

You can control your real-time risk exposure by monitoring your used and free margin when trading with Amalga.
The amount of money needed to be deposited to hold the trade is known as Used Margin whereas Free Margin is the amount of money left in your trading account that allows you to open additional positions or absorb losses if any. Both the Used and Free margin makes up your Equity.

Margin Call

Amalga 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.

Stop-Out Level

The stop-out level refers to the equity level at which your open positions get automatically closed. The stop-out level in a client's account is reached when the equity in the trading account is equal or falls below 50% of the required margin.