Margin and Leverage
Margin-based Forex Trading
The EBSI Forex trading platforms support margin trading, which enables you to leverage the funds in your account. Trading with leverage may boost your profits potential. However, you may potentially lose a considerable amount of investment trading with high leverage if rates move against you.
Professional traders often trade with low leverage. EBSI Forex offers up to 1:20 leverage, which helps protect your capital and keep your returns more consistent by giving out a manageable leverage ratio.
Rate volatility and reduced market liquidity can result in wider spreads, especially around market open and close or during volatile periods.
EBSI Forex requires adequate margin in your account at all times to cover the unrealized losses incurred. To avoid margin closeouts, reduce the margin you are using by closing some trades or adding more funds.
You will receive a margin call via email when your open position falls below 3% of the gross principal value of the contract. If you do not return your portfolio to the required margin level – 3% of the contract value – EBSI Forex, without further notice, will auto liquidate your position if the margin falls to 1%.
The following example shows how much you could trade with US$1,000 at 20:1 leverage and the net asset value (NAV) when the market price moves:
Gross principal value of US$1,000 x 20:1 leverage= US$20,000 trade
If trade moves up 100 pips, the unrealized profit is US$200 => NAV = US$1,200
If trade moves down 100 pips, the unrealized loss is US$200 => NAV = US$800.
If trade moves down 300 pips, the unrealized loss is US$600 => NAV = US$400. In this case, a margin call will be made.
For more information on margin closeouts and how to prevent them, please refer to the latest version of the Client Agreement and Schedules.
Forex Trading Robots on MT4
An Expert Advisor (“EA”) refers to an algorithmic/automated Forex trading system for the MT4 platform of EBSI Forex, which makes trade decisions based on the trading strategies you define in them.
EAs are capable of quickly reacting to changes in the market by instantly analyzing the market movements and respond based on built-in commands. MT4 supports client’s EA scripts, however, due to regulatory requirements, we are not able to provide EA scripts for client use.
EBSI Forex is able to provide custom indicators to be used on MT4. The purpose of these indicators is to provide clients with alerts for potential trade entry and exit points based on technical analysis.
- copy and paste ma-x.mql4 to the indicator folder in MT4
- drag and drop the indicator into the chart with the required time frame.
- the indicator will automatically filter the G7 pairs and send an alert when the trade signal condition is reached.
Disclaimer: Please note that the notification or provision of information relating to technical indicators does not constitute a solicitation, invitation or offer by EBSI Forex or any of its associated companies or by any of their respective directors, officers, employees, agents or representatives to enter into, whether as principal or agent, any foreign exchange investment or transaction. Investors must make their own independent judgment with respect to any investment decision based on their own investment objectives, experience, financial position and ability to bear loss. In case of any doubt or query, investors should consult their own independent professional advisor as to the suitability or merits of any investment or transaction prior to making any investment or entering into any transaction.