Margin is the amount of collateral to cover any credit risks arising during your trading operations.
Margin is expressed as the percentage of position size (e.g. 5% or 1%), and the only real reason for having funds in your trading account is to ensure sufficient margin. On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000. The margin in your trading account needs to be equal or above 100% in order for you to be able to open new trades, unless the new trades will result in your trading account being fully hedged.
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. 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.
How would it be possible to trade 3000 times the amount you have at your disposal? At AximTrade you have a free short-term credit allowance whenever you trade on margin: this enables you to purchase an amount that exceeds your account value. Without this allowance, you would only be able to buy or sell tickets of $1,000 at a time.
AximTrade shall 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 AximTrade.
Leverage for your accounts depends on the account type you open and the amount of equity in the account. Margin requirements do not change during the week, nor do they widen overnight or at weekends. Leverage may be reduced for new positions opened 30 minutes before and after important news events. Leverage for these positions will then be adjusted to account leverage after the time period is over. Leverage of the trades, which were opened before the news event time won't be changed.
Client can reduce existing leverage on the account in Member Area by applying custom leverage. Custom leverage cannot exceed maximum leverage, which is allowed by the Equity rules described below. Client can change leverage back to default, so it will follow Equity rules. For example, if client has a Standard account with Equity $2,700 – leverage can be reduced only to values below 1:1000.
By default, leverage changes automatically based on the type of trading account and the value of the Equity. When Equity increases and switches to the new range - leverage changes to the lower one automatically in few minutes. When Equity drops 10% below the range – leverage increases automatically to the higher level in few minutes. The range of Equity and corresponding leverage values for different types of accounts are described in the tables below.
On the one hand, by using leverage, even from a relatively small initial investment you can make considerable profit. On the other hand, your losses can also become drastic if you fail to apply proper risk management.
This is why AximTrade provides a leverage range that helps you choose your preferred risk level. At the same time, we do not recommend trading close to a leverage of 3000:1 due to the high risk it involves.
At AximTrade you can control your real-time risk exposure by monitoring your used and free margin.
Used and free margin together make up your equity. Used margin refers to the amount of money you need to deposit to hold the trade (e.g. if you set your account at a leverage of 100:1, the margin that you will need to set aside is 1% of your trade size). Free margin is the amount of money you left in your trading account, and it fluctuates according to your account equity; you can open additional positions with it, or absorb any losses.
Although each client is fully responsible for monitoring their trading account activity, AximTrade 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 60% 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.
The stop-out level refers to the equity level at which your open positions get automatically closed. Example of our stop out levels to be shown here
The most productive hours for day traders are between the opening of the London markets and the closing of the US markets. The peak time for trading is when the US and London markets overlap between 1 pm GMT – 4 pm GMT. These hours are usually when the highest volume of trades takes place and are considered the most ideal in terms of trading opportunities.
The mainstay sessions for traders are the London, US and Asian markets. Market opening and closing hours changes between the summer and winter months, as many countries shift to/from daylight savings time (DST).
Here is an overview of the trading sessions that will help you make the most of the market:
|Asia||Tokyo/ Hong Kong/ Singapore||23:00 - 08:00||00:00 - 09:00|
|Europe||Frankfurt/ London||08:00 - 16:00||09:00 - 17:00||EUR, GBP, USD|
|America||New York/ Chicago||13:00 - 21:00||14:00 - 22:00||USD, EUR, GBP, AUD, JPY|
|Pacific||Sydney||22:00 - 06:00||23:00 - 07:00|
AximTrade offers swap free accounts for selected regions. On swap-free accounts there will be no daily crediting / withdrawal of funds / losses related to swap-operations. This will enable the client to not receive any extra income and does not suffer any extra losses.
These accounts are opened automatically if provided by the region through our system
However, should any client be found to have abused the "swap-free" status, AximTrade shall retain the rights to revert the status on all of the client's trading accounts within their member area and charge swap.
Improper use in this case is, including but not limited too, a situation where a large portion of the transactions on the client's trading account has a negative swap, which is not levied by AximTrade, in accordance with the "swap-free" status.
For rollovers for swap, AximTrade debits or credits clients’ accounts and handles rollover interest for all positions held open after 22:00 GMT, the daily bank cutoff time.
22:00 GMT is considered to be the beginning and the end of a trading day for most brokers. Any positions which are still open at 22:00 GMT sharp are subject to rollover and will be held open overnight. Positions opened at 22:01 are not subject to rollover until the next day, but if you open a position at 21:59, a rollover will take place at 22:00 GMT. For each position open at 22:00 GMT, a credit or debit will appear on your account within an hour.
Although there is no rollover on Saturdays and Sundays when the markets are closed, banks still calculate interest on any position held open over the weekend. To level this time gap, AximTrade applies a 3-day rollover charge on Wednesdays.
Swap charges details will be available at our Tools and Specifications page
AximTrade are leaders at introducing a no re-quotes and no rejection of orders policy since 2010. We offer 100% execution of orders with almost all of our orders executed in less than 1 second.
Our Trading Platform << Downloads Page >> supports market, limit, stop and trailing stop orders, and you have the freedom to place orders at any time during trading hours.
With fractional pip pricing you can trade with tighter spreads and enjoy most accurate quoting possible.
Kindly note that you may only hold up to 200 positions open simultaneously (per client and including pending orders).
Trade up to 5 million with a simple click, as we guarantee fills on market orders up to 50 lots (5 million). However, if you intend to deal in an amount even bigger than this, you can either split up the order into smaller trade sizes.
We understand the importance of stop-loss and limit orders in risk management, this is why we guarantee fills on both such orders up to 50 lots at the best available market price.
Should there any market gaps occur from a Friday close to a Sunday opening, AximTrade executes all pending limit or stop orders at the first available market price for the corresponding position size.