• Available Maximum Leverage on PaxForex
• The maximum leverage 1:500 is only for Forex pairs
• The maximum leverage for Precious Metals
• The maximum leverage for Cryptocurrency pairs
• The maximum leverage for Shares (Stocks)
• NBP (Negative Balance Protection)
• Flexible Leverage option from 1:1 to 1:500
• Diversification principles and investments control
  • Set Stop Loss to manage risks
• Utilize PaxForex MT4 for better investment
  • Why use PaxForex MT4 to trade Forex and CFDs?

Available Maximum Leverage on PaxForex

On PaxForex’s MT4, you can utilize up to 1:500 leverage.

With the 1:500 high leverage, you can place orders 500 times higher than the available fund in the account.

The maximum leverage 1:500 is available for both novice and professional traders.

All account types of PaxForex has the same leverage condition.

PaxForex’s 1:500 leverage will increase your returns of investment.

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The maximum leverage 1:500 is only for Forex pairs

Although PaxForex’s 1:500 leverage can be a great trading tool, you can utilize such high leverage only on Forex currency pairs.

In case of other markets, the maximum leverage is limited to lower levels.

On PaxForex MT4, you can invest in Forex currency pairs, Precious Metals (Gold and Silver), Stocks (Shares) and Cryptocurrency pairs.

The maximum leverage for Precious Metals

For trading of Gold and Silver on PaxForex MT4, you can utilize high leverage up to 1:100.

1:100 leverage on precious metal trading is much higher than the average offered by other brokers.

Precious Metals (both Gold and Silver) are available for trading in the same account, along with Forex currency pairs.

The calculation formula used for the margin requirement of Precious Metals are:

• Gold Margin Calculation
  100 * Current Market Price / 100
• Silver Margin Calculation
  5,000 Current Market Price / 100

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The maximum leverage for Cryptocurrency pairs

On PaxForex MT4, Cryptocurrencies are offered as paired with USD.

You can trade Cryptocurrency pairs of Bitcoin, Ethereum, Litecoin and Ripple with up to 1:5 leverage on PaxForex MT4.

Note that the prices of Cryptocurrency pairs are largely different depending on the symbol, thus the required margin is also largely different depending on the Cryptocurrency pair you trade.

On PaxForex MT4, each Cryptocurrency pair is shown in the following symbols.

• Bitcoin = BTCUSD
• Ethereum = ETHUSD
• Litecoin = LTCUSD
• Ripple = XRPUSD

The calculation formula for the margin requirement of Cryptocurrency pairs is: Current Price of the Pair / 5.

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The maximum leverage for Shares (Stocks)

For the trading of Shares (Stocks) on PaxForex MT4, you can utilize up to 1:4 leverage.

The applicable leverage is fixed and the account’s leverage setting won’t affect the calculation.

The calculation formula used for the margin requirement of Stock trading is: 1 * Contract Size * Current Market Price / 4.

Note that trading of Shares (Stocks) is available only on Standard and VIP account types.

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NBP (Negative Balance Protection)

PaxForex supports NBP (Negative Balance Protection) for all account types.

When combining the NBP and high leverage, you can trade large trading volume with small margin while limiting the maximum loss to the total account balance.

NBP literally protects traders from negative balances.

PaxForex’s NBP system gets triggered when the account balance goes negative.

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Flexible Leverage option from 1:1 to 1:500

On PaxForex MT4, the leverage is fixed for CFD products including Precious Metals, Stocks (Shares) and Cryptocurrency pairs as mentioned above.

For Forex currency pairs, you can flexibly change the applicable leverage from 1:1 to 1:500.

While trading with 1:500 leverage will increase the trading volume by 500 times and can be a great advantage for Forex investors, you can limit the volume to lower the risks exposure by lowering the leverage for your account.

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Diversification principles and investments control

The total amount of funds invested should not exceed 50% of the total capital.

This principle defines the rule of calculating margin for opened positions, the size of compulsory reserve for usage in emergency situations and continuation of normal trade shall not be less than half of the total capital.

However, many analysts believe that the percentage of investments should be even smaller around 5% to 30%.

The total amount of funds invested in one market may not exceed 10% to 15% of total capital.

In this case, a trader is ensured from excessive funds investment in a deal that can lead to ruin.

The normal risk rate for each market, in which a trader invests his funds, should not exceed 5% of the total amount of the capital.

Thus, if a deal turns out to be unprofitable, the trader is ready to lose no more than 5% of the total amount of his funds. The figure of 5% is taken from Murphy’s works, however, for example, Elder gives 1.5% – 2%.

The total amount of guarantee fees to be paid at position opening in terms of one market group shall not exceed 20% – 25% of total capital.

Markets included in one group, move more or less equally.

Large positions opening in every market of one group violates the diversification principle.

When working in the FOREX market four major markets can be noted with exchange rates behaving in a rather similar way which are the dollar area, the sterling area, the yen area and the eurozone.

Set Stop Loss to manage risks

Stop-loss is a way to specify the maximum loss that investors is ready to incur.

Such orders protect investors from severe losses in case of force majeure.

First of all it is necessary to place a stop-loss correctly.

This issue can be solved by means of technical analysis. The second important factor is tightening of stop-loss.

Many investors move stop orders closer to the current price as profit for their positions grows.

On one hand it will help to minimize losses, on the other hand, it will keep the profit already received.

It should be noted that trader has to start stop-order level determination basing on a reasonable combination of technical factors indicated on a price chart, and with his own funds’ protection taken into account.

The more volatile the market is, the more distanced stop-loss orders should be from the current price level.

It’s in the trader’s best interest to place stop order as close to the price level as possible in order to minimize losses from unsuccessful transactions.

At the same time too “hard” stop-orders can lead to unwanted elimination of a position during the short-term price fluctuations (“noise”).

Too remote stop-orders are not sensitive to the “noise”, but can lead to significant losses.

There are many methods to set a stop-order.

According to one of these methods stop-orders are set on the basis of two-day minimum.

The basis of this method is volatility.

In case of long position stop-order is supposed to be set about 10 points below the two-day minimum.

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Utilize PaxForex MT4 for better investment

Created for forex traders, PaxForex MT4 provides a powerful trading platform that is robust in its functionality, yet delivers an easy to use forex platform with full capabilities needed for professional trading.

Using its advanced futures, its options allow Fund Managers to efficiently integrate their forex portfolio.

The PaxForex MT4 Platform interface is fully customisable and allows traders to tailor the platform to their specific needs, markets and trading styles.

The platform offers a clear and intuitive trading experience, which is ideal for professional traders.

Traders enjoy a full range of executable prices with full transparency on the liquidity depth.

This allows for the best possible pricing.

Why use PaxForex MT4 to trade Forex and CFDs?

On PaxForex MT4, orders are entered and executed quickly, other trading facilities include state of the art allocation tools, management, risk analysis tools, real-time charts and price quotes to deliver an all round, performing trading platform for managers and those operating multiple accounts.

PaxForex MT4 works based on Fix API and delivers an overall user-friendly trading experience utilising proven technology that enables clients to trade at the highest level.

Traders worldwide appreciate the benefits of using PaxForex MT4 platform as it delivers superior functionality and streaming prices from multiple global banks.

Specifically designed for currency traders, the PaxForex MT4 platform offers all of the symbols offered on the MT4 platform including the major currency pairs and exotics from around the globe.

PaxForex’s forex pairs can be traded with 1:500 leverage, gold and silver can be traded with 1:100 leverage using the range of industry leading platforms.

Offering traditional forex trading in lots, 24 hour markets, flexible leverage setting of up to 1:500 and a choice between order or instant execution modes, PaxForex’s award-winning trading platform is one of the best in the industry.