- Conditions of LMFX’s 1:1000 high leverage
- Margin Call in LMFX MT4
- Stop out in LMFX MT4
- LMFX supports NBP for all accounts
- Start from LMFX’s MT4 demo accounts
Conditions of LMFX’s 1:1000 high leverage
LMFX offers up to 1:1000 leverage to all its traders.
This means that If you trade with LMFX, the broker will require only 0.1% of margin to support positions.
Or you can also think that you have 1,000 times more margin available for trading.
This much high leverage means that LMFX is great at managing investment risks. You can find only a few brokers in the world which offer more than 1:1000 leverage for trading.
1. Leverage limited for some account types
LMFX offers 3 different account types and each account has got maximum limitation for leverage.
- Premium account is up to 1:1000
- Fixed account is up to 1:400
- Zero account is up to 1:250
By using the Premium account, you will have wider spread than Zero account but the account type is for high leverage traders.
You will only need to deposit 50 USD to start trading with the Premium Account.
2. No restrictions for higher account balances
Most of the brokers restrict leverage according to the account balance. Like if an account has got high balance, the leverage will be decreased and limited.
But fortunately, LMFX does not restrict leverage according to account balances.
So you do not need to worry about margin call or stop out by leverage restrictions.
3. Lower leverage applies for some CFD products
The leverage 1:1000 is the maximum leverage for Forex currency pairs, but not for CFDs and Precious Metals.
For other financial instruments, you will be required fixed margin or around 1%(leverage 1:100).
Please make sure that you know the contract size and the margin requirement for CFDs and Precious Metals as these symbols may require much higher margins for trading.
Margin Call in LMFX MT4
Margin call is a notification to you through the trading platform(MT4) when the margin level % is low in your account.
It is just a notification through the platform, so you may not receive it via email or phone though, the margin call itself does not do anything to your account.
Stop out in LMFX MT4
Stop out is an action of liquidation to avoid further losses in your account. Stop out triggers automatically by the system and it closes all open positions.
There is nothing you can do when the Stop out occurs but just wait a few moment and see the account balance left.
LMFX supports NBP for all accounts
When there is an extreme activity in the financial market, all your positions could be liquidated(closed) as the margin level goes too low. And when this happens, the account balance could also go negative, as the Stop out couldn’t actually contain the losses to the account balance in the account.
But there is nothing to worry about the negative balance. Because with LMFX, you do not have to cover the exceeded losses but LMFX will do.
LMFX assures traders that its clients will not lose more than they deposit and the exceeded losses are covered by the NBP(Negative Balance Protection).
You can leverage your profit to 1:1000 and limit the loss to the deposit amount.
Start from LMFX’s MT4 demo accounts
LMFX MT4 demo account will offer you the exact same trading environment as the real/live ones.
The demo accounts are free to use, and you can see how the margin requirement, profit/loss and margin call/stop out in its trading platform.
But please note that there is no slippage in the Demo version, as there is no liquidity concern in the virtual trading.
So profit/loss can not be the same in demo and real even if you trade exact same in both accounts.