Leveraged trading allows you to control a larger position with a smaller amount of capital by using borrowed money. While this amplifies your potential returns, it also increases the risk, as losses can be magnified.
To keep your positions open, you need to maintain an adequate margin level in your account. If the value of your positions falls below this required margin, your broker may liquidate your positions, even if you choose not to close them.
As such, it's essential to actively manage your open positions and be mindful of your margin requirements at all times.
Margin Rules for Evaluations and Simulated Funded Demo Accounts
In the event that your demo account balance falls to 90% of the borrowed amount, you will receive a margin call. This means you need to either add funds to your account or close positions to avoid having your trades liquidated.
If the margin level falls below 100%, a Stop Out will automatically occur. The Stop Out feature will close the least profitable positions on your virtual account, liquidating the losing trades to prevent further simulated losses.
To manage your margin effectively, you may need to reduce the lot sizes of your positions. It's strongly recommended that traders use proper risk management techniques, such as placing stop losses, to avoid margin calls and stop outs.
Your available margin is calculated based on your current demo account balance. Proper margin management is key to successful leveraged trading, and we encourage all traders to stay vigilant.
If you have any further questions, feel free to reach out to us via our Support Team.