FAQ——Margin requirements
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What is the margin?
Margin can be regarded as the actual deposit required to maintain open positions. This is not a fee or transaction cost, but only a part of the account's net worth is allocated and allocated as a margin deposit. NewEngine's margin requirement is determined by a certain percentage of the nominal trading volume plus a small amount of buffer. The buffer amount is added to mitigate the impact of daily/weekly fluctuations.
* Please keep in mind that the margin effect has advantages and disadvantages. It can help traders to establish a larger trading volume than their accounts, and it will also expand profits and losses.
Why should I trade by margin?
Margin tradingis a common attraction in the foreign exchange market, allowing you to establish transactions that are larger than your account funds. For example, if the account balance is 50,000 USD, customers can buy USD/JPY positions of 300,000 USD, and only need to take a deposit of 3000 USD (as low as 1% margin rate).
Margin trading can have a positive and negative impact on your trading experience, because profits and losses can be greatly expanded. Using any level of margin rate for foreign exchange transactions may not be suitable for all investors.
What is our margin requirement?
at NewEngine
Foreign exchange margin requirements are 0.5%-2% (leverage 50-200).
The margin requirement for cryptocurrencies is 20% (leverage 5).
The margin requirement of the stock index is 2% (leverage 50).
The margin requirement for stock CFDs is 20%-100% (leverage 1-5).