easyMarkets: Explaining the rules and activation conditions for zero cut and loss cut in FX accounts

easyMarkets

What you need to be concerned about when trading with easyMarkets is to cut your losses. A trader cannot always decide on the timing of a stop loss. Please note that if you exceed a certain threshold, your loss will be cut automatically.

account type

First, check your account type. Rules for margin calls and stop-loss cuts vary depending on the account type. Other companies have completely different tools, currency pair brand settings, and information, so be sure to check in advance. easyMarkets allows you to trade virtual currencies and has high leverage, so it is recommended. The official website also has information about what you can invest in. There are also calculation tools.

StandardPremiumVIPMT5
Trade StyleDDDDDDDD
Max Leverage4004004002,000
Trade InstrumentsForeign exchange
precious metal
energy
Products/Stocks
stock index
virtual currency
Foreign exchange
precious metal
energy
Products/Stocks
stock index
virtual currency
Foreign exchange
precious metal
energy
Products/Stocks
stock index
virtual currency
Foreign exchange
precious metal
energy
Products/Stocks
stock index
virtual currency
CommissionFreeFreeFreeFree
Spread2.0pips~1.8pips~1.0pips~0.6pips~
Lots100,000 currency100,000 currency100,000 currency100,000 currency
Min Lot0.010.010.010.01
Scalping
Auto Trading
Hedge
Margin Call70%70%70%70%
Loss Cut30%30%30%30%
Zero Cut
Trade ToolOriginal
MT4
Original
MT4
Original
MT4
MT5
Base CurrencyJPY
USD
EUR
JPY
USD
EUR
JPY
USD
EUR
JPY
USD
EUR
Min Deposit25$2,000$10,000$25$
Bonus

What is margin call?

A margin call is a warning that a stop-loss cut is near. A margin call is simply a sign that a stop-loss cut is approaching, so there is no restriction on the trader. However, traders need to decide whether to cut their losses or put in additional funds. If this is left unaddressed, a loss cut will occur when unrealized losses increase further. Margin call is set at 70% for all account types.

What is loss cut?

Stopout means forced liquidation. Stopout cut is specified at 30% for all account types. Stop-loss cuts are settled regardless of the trader’s intention. There is no option at all as it will be a forced loss cut. The meaning of loss cutting is to protect the account balance. To talk about stop-loss cuts, it is necessary to talk about them in conjunction with margin money. This is because the loss cut is determined by the margin maintenance rate.

What is margin?

Margin is the trading funds you deposit into your account. In FX, you deposit margin money as collateral and trade using leverage.

What is margin maintenance rate?

Margin maintenance rate is the ratio of required margin to the account’s effective margin. Margin maintenance rate = Effective margin ÷ Required margin x 100.

Stopout cut is activated at margin maintenance rate of 30%

easyMarkets’ stop loss is activated when the margin maintenance rate falls below 30%. This will be the same for all account types. If you hold multiple positions, the positions with the largest unrealized gains will be automatically liquidated in order.

How to avoid loss cut

Loss cuts are something you want to avoid in the first place, but how can you avoid them?

Loss cut

One way is to cut your losses to prevent losses from increasing in the first place. By cutting your losses, you will be able to protect your funds as the damage will only be minor. This means that it is better to take a look at the market situation and make a decision.

additional funds

There are ways to add additional funds. This largely depends on your ability to read the market. This is because if a major trend is occurring and the reversal continues, this additional capital will be meaningless. This is because even if you make an additional deposit, you may be subject to a forced loss cut.

both houses

If you get caught in a strong trend, you can avoid it by taking the opposite position. This is because the range that you can withstand increases as the opposite position becomes an unrealized profit. easyMarkets allows double-denomination.

What is zero cut?

Next, I will explain about zero cut. Zero cut is a system in which the FX broker will cover the loss if the account balance becomes negative at some point. In other words, it is a guarantee system that the account balance will always be zero. easyMarkets also uses zero cuts, so traders can trade with confidence.

No margin call will occur

easyMarkets, which uses zero cut, does not require margin calls. This means that traders do not have to risk incurring debt. You will not lose more than the amount you deposited, and you can avoid debt risk.

There are only benefits

Zero cuts basically only have benefits. Don’t worry, there are no disadvantages.

Activation conditions

The question then becomes in what order the things explained above are activated, and they are as follows.

1.Margin call

A margin call will be triggered when the margin maintenance rate falls below 70%. A margin call is not a constraint, but it does serve as a warning, giving the trader the opportunity to decide whether to add capital or take a loss.

2.Loss cut

A stop-loss occurs after a margin call. The stop-loss cut is automatically triggered when the stock falls below 30%, so it is triggered regardless of the trader’s intention. When the margin maintenance rate falls below 30%, positions with the largest unrealized losses will be settled first.

3.Zero cut

When this loss cut occurs, zero cut is automatically activated. The zero cut is set off against the bonus, so as long as there is a bonus, the zero cut will not be activated. Zero cut will be activated if the amount becomes negative even after including the principal and bonus. Therefore, if the negative amount can be compensated with the bonus balance, the zero cut will not be activated.

EasyMarkets allows you to open a free account

EasyMarkets allows you to open an account for free. We also offer our own platform and VIP account, and we also provide excellent support. Users will need two documents to complete the registration process: an identity verification document and an address verification document. Please try opening an account. Frequently asked questions are also available on the official website.

Deposit and withdrawal services

Currently, we accept payments from bank transfers to credit cards for deposits and withdrawals. It will take a few days to complete the reflection. Please note that the minimum deposit amount is set at $25. The maximum leverage is over 400x, and with MT5 you can trade with a leverage of 2000x, so you can trade with small amounts. It is attractive because there is a wide variety of different products such as Bitcoin, stocks, precious metals, and foreign exchange. You can also make new trades with currencies that other companies cannot.

Few restrictions on trading methods

The latest version allows trading on both sides, scalping trading, and even system trading using automated trading (EA) tools. For more information on how to use it, please contact the management support and ask via chat. They will answer depending on your purpose. There are many promotions, cashbacks, and limited campaigns that are held from time to time, so you can receive bonuses on eligible accounts.

Holds financial license

easyMarkets holds a financial license, so it is safer and more reliable than other companies. We offer unique option trading that other companies, such as easytrade, do not offer, and it is usually possible to trade using apps. Basic Metatrader is provided, so you can fully use them.

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