Articles on: Prohibited Practices

Margin Abuse


Margin Abuse


To ensure sustainable risk management, traders must not use more than 75% of their margin on open positions. Over-leveraged trading is not permitted. This restriction applies regardless of whether positions are split across multiple trade.


Example: If you have a \$10,000 account with 1:50 leverage, your buying power will be: $10,000 × 50 = $500,000. With the 75% margin rule, the maximum usable buying power is: 0.75 × $500,000 = $375,000. Assume the current market price of EURUSD is \$1.14, and the contract size is 100,000 units per lot: $1.14 × 100,000 = $114,000 per loT. The maximum number of lots you can open without violating the margin rule is: $375,000 ÷ $114,000 ≈ 3.29 lots



Here's an example image showing where you can check your margin usage right before opening a trade.


Tradelocker


Warning: Violation of this rule results in immediate account termination.



Updated on: 18/09/2025

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