Articles on: Prohibited Practices

Margin Abuse

Margin Abuse



Don’t use more than 65% of your margin on your open positions. We do not support over-leveraged trading, as it undetermines sustainable risk management.

Example: If you have $10k account with 1:50 leverage, your buying power will be $10,000 x 50 = $500,000. With the 65% margin rule, you can only use 0.65 x $500,000 = $325,000 of this buying power. Assuming the current market price of EURUSD is $1.14, and contract size is 100,000 units per lot. Then the cost of opening a position is $1.14 x 100,000 = $114,000 per lot. This means that you can only open $325,000 / $114,000 = 2.85 lots without violating the margin rule. Please note that the amount of lots you can open changes with your balance and the current market price.

Here's an 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: 25/05/2025

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