Margin is a security that is deposited by the investor or trader in order for him to keep the positions open. It is a few percentage taken from the value of the investor's trading account.

1. Trade12 | Margin and Leverage in Forex |
What is a Margin??
Margin is a security that is deposited by the investor or trader in order for him to keep
the positions open. It is a few percentage taken from the value of the investor’s trading
account.

2. What is a Leverage??
Leverage is provided by Trade12 in order for the invester or traders to elevate their
market exposure, enabling them to open positions that exceed their first investment. The
maximum leverage that an trader can get by trading with Trade12 is up to 1:400.
However, before investing with a leverage, a trader must initial consider all the possible
risks involved while trading with a highest leverage ratio.
Margin Call and Stop Outs
Margin Calls and Stop Outs are part of the Risk Management strategies or way
of Trade12 and was implemented to limit further losses and to decrease the risk of a
negative account balance.When an investor trades in a leverage, the investor borrows a
definite amount of money from the broker in order to trade at a level that is higher than
his initial investment.
Margin Call is the first warning that is sent to the investor to inform him that his margin
account value is falling below a certain percentage level (set by the broker) and that

3. there is not enough balance to support the investor’s current open positions any longer.
The investor will either be requested to deposit more money to his account or close
some of his open positions and sell off some of his assets in order to meet the minimum
margin level.
Stop Out occurs when the equity in the margin account falls below the stop-out level set
by Trade12, which closes down all of the investor’s open trades to reduce the risk of a
negative account balance.
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