CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs and margin FX are leveraged products that carry a high level of risk to your capital. You should only trade with money you can afford to lose. Be Aware: You can lose all, but not more than the balance of your Trading Account. You do not own, or have any rights to, the underlying assets. Past performance is no guarantee of future performance. This information is intended to be general in nature and is not financial product advice. Any advice contained on this website or provided to you by Fort Securities Australia Pty Ltd is general advice only and has been prepared without considering your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. We encourage you to obtain independent financial advice and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS) and Target Market Determination (TMD) to determine if this product is suitable for you before deciding to enter into or obtain any financial products issued by us. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Be Aware: You can lose all, but not more than the balance of your Trading Account. These products may not be suitable for all clients therefore ensure you understand the risks and seek independent advice. You do not own, or have any interest in, the underlying assets. Fortrade Canada Limited is an Order Execution Only broker, and does not provide investment advice or recommendation. Fortrade is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF). Fortrade Canada Limited is authorised to provide CFD trading services in all provinces in Canada except Quebec. Residents of Alberta province are required to be Accredited Investors to trade CFDs.
CFDs are complex and highly speculative instruments, which come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your invested capital. Be Aware: You can lose all, but not more than the balance of your Trading Account.
76% of retail investor accounts lose money when trading CFDs with this provider. These products may not be suitable for all clients, therefore ensure, that you understand the risks and seek independent advice.
Should you proceed with investment in CFDs on virtual currencies, please note, that the values are highly volatile and may result in a significant loss for a short period of time.
This material does not constitute an offer of, or solicitation for, a transaction in any financial instrument. Fortrade accepts no responsibility for any use that may be made of the information and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information, consequently any person acting on it does so entirely at their own risk.
The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Be aware, as a retail client you can lose all, but not more than the balance of your trading account due to Fortrade’s negative balance protection. The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
FAQs
Free Margin is the difference between Equity and Used Margin. Free Margin refers to the Equity in a trader's account that is NOT tied up in margin for current open positions. Free Margin is also known as “Usable Margin” because it's margin that you can “use”…. it's “usable”.
What is free margin? ›
Free margin is equity in a trader's account not reserved for margin or open positions, and which is available to be used to open new trades. Free margin is also the amount your existing holdings can move against you before you face a margin call.
What happens if free margin is 0? ›
What happens if my free margin drops to zero? If the free margin drops to zero, you will not be able to open new trades. Forex transactions have a value, that is, an amount of funds needed to open them. If the free margin is less than necessary to open a new trade, the broker will not allow it to be opened.
How much free margin is safe? ›
In forex trading, a margin level above 100% is considered safe. This means that the amount of equity in our account is higher than the funds used for the trades.
What is the difference between free margin and balance? ›
(Balance plus Profit/Loss plus Credit). Margin - This is the total current Equity value you need to have, and maintain, in your account to cover and maintain any open positions. Free Margin – Free margin is the amount of funds that have not been used as margin for open positions.
What is an example of a free margin? ›
Free Margin Account
For example, if your equity is $12,000 and the used margin is $2000, your free margin is $10,000. This amount can be used to open new positions.
How do you use free margin? ›
In its simplest definition, Free Margin is the money in a trading account that is available for trading. To calculate Free Margin, you must subtract the margin of your open positions from your Equity (i.e. your Balance plus or minus any profit/loss from open positions).
What is the difference between margin and free margin? ›
Margin is the amount of funds you deposit with your broker to guarantee your open trades. On the other hand, a Free Margin is the size of equity in your trading account that you can use to get into new positions.
Why is my free margin negative? ›
Free margin refers to the money, which will be used by the trader to open new orders. Based on the margin level of the trader, brokers determine whether the client can open new orders or not. Traders should keep in mind that if their pending losses exceed margin requirements, free margin can become negative.
What happens if you lose on margin? ›
Buying on margin means you are investing with borrowed money. Buying on margin amplifies both gains and losses. If your account falls below the maintenance margin, your broker can sell some or all of your portfolio to get your account back in balance.
According to Regulation T of the Federal Reserve Board, you may borrow up to 50 percent of the purchase price of securities that can be purchased on margin. This is known as the "initial margin." Some firms require you to deposit more than 50 percent of the purchase price.
How risky is margin? ›
While margin loans can be useful and convenient, they are by no means risk free. Margin borrowing comes with all the hazards that accompany any type of debt — including interest payments and reduced flexibility for future income. The primary dangers of trading on margin are leverage risk and margin call risk.
What is the danger of margin account? ›
You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to deposit additional funds to avoid the forced sale of those securities or other securities or assets in your account(s).
Is margin free money? ›
Because using margin is a form of borrowing money it comes with costs, and marginable securities in the account are collateral. The primary cost is the interest you have to pay on your loan. The interest charges are applied to your account unless you decide to make payments.
Is margin better than cash? ›
Margin accounts let you borrow funds from your brokerage to supplement your investment capital. This leverage magnifies your buying power, enabling you to acquire more securities than you could with cash alone. This is enticing for those who are comfortable taking on larger positions sizes and increased risk.
Can I withdraw my margin balance? ›
Yes! Using your debit card to make purchases works similarly to withdrawing money from your individual investment account. If you turn on Margin withdrawal, you can use margin for day-to-day spending too.
What does margin and free margin mean? ›
Margin (M) represents the amount of money that you need in order to enter a trade. Margin Level (ML) shows the ratio between your account's Equity and Margin. ML = E/M *100. Free Margin (FM) tells you how much funds you have left to open new trades.
How is free margin calculated? ›
Free Margin is calculated as follows: Free Margin = Equity - Required Margin. Deposit bonus is a part of free margin until the volume requirements are met.
Is margin money my money? ›
Margin is the money borrowed from a broker to purchase an investment and is the difference between the total value of an investment and the loan amount. Margin trading refers to the practice of using borrowed funds from a broker to trade a financial asset, which forms the collateral for the loan from the broker.
Is margin balance my money? ›
Again, margin balance is the amount of money an investor owes to its brokerage at any given time in a margin trading account.
