Fusion Markets is an online broker that provides competitive trading conditions for forex and other financial instruments. Leverage and margin are the two important aspects of trading with Fusion Markets.
It is important for the traders to understand leverage and margin for managing risk and optimizing trading strategies.
Quick insights
Fusion Markets Margin Requirements: Key Insights for Smart Trading
Margin is essentially a security deposit that the broker holds as collateral against your trade. Fusion Markets provides flexible margin options based on the traders’ risk profiles and account types.
When your margin level reaches 90%, you will officially be in a margin call. And at 20% of free margin, the MT4 platform will try to automatically stop out your position to avoid negative balances.
In Fusion Markets, it is the responsibility of the trader to bear all responsibility for margin calls and manage to fund his account. Fusion doesn’t guarantee contacting the traders to prompt to deposit more funds into the account.
Fusion’s margin calculator helps you to calculate the margin needed to open and hold positions. Input to be given are:
- Account base currency
- Currency pair
- Leverage
- Size of position in lots
Fusion Markets Leverage
Fusion Markets leverage allows traders to hold larger positions with a smaller amount of capital. Since it amplifies both potential profits as well as potential losses, it should be used carefully.
How much leverage does Fusion Markets offer? Fusion offers maximum leverage to the clients based on various factors, such as residing country and entities they are trading with. FX trading is leveraged, meaning that Fusion clients can gear up their account at the maximum available leverage of 500:1.
Below are details of maximum leverage offered based on the products.
| Products | Maximum Leverage |
|---|---|
| Forex & Metals | 500:1 |
| Index CFDs | 100:1 |
| Cryptocurrencies | 10:1 |
Below are details of maximum leverage offered based on the account balance.
| Account Balance | Maximum Leverage |
|---|---|
| $0 – $50,000 | Up to 500:1 |
| $50,001 – $100,000 | Up to 300:1 |
| $100,001 – $250,000 | Up to 200:1 |
| $250,001 – $500,000 | Up to 150:1 |
| $500,000 – $1,000,000 | Up to 100:1 |
| $1,000,001 or above | Up to 50:1 |
Key points about Fusion’s leverage
- The higher the leverage, the greater the potential profit or loss.
- Since leverage can magnify major market movements, even small changes in the market can result in significant gains or losses.
- It is crucial to use proper risk management, including position sizing and stop-loss orders while trading with high leverage.
Tips to manage margin and leverage in Fusion
- Be prepared for any extreme market movements and use stops, buy limits and sell limits to avoid potential loss in your open position/s.
- Do not tend to abandon your long-term strategies because of what you see in the short term. As long as you diversify, stick to your strategy.
- Avoid taking impulsive decisions. Unless you learn to handle your emotional state, you won’t go far though you have the best strategy in this world.
- Trade only as much you are willing to use and never comprise all your assets. Try to practice moderation in trading.
- Trading is a high-risk as well as high-reward game. Avoid taking larger positions or expanding to different asset classes before gaining enough experience in trading.
- While leverage can be your best friend, it is also your worst enemy. One should learn to avoid leveraging too hard like 1:500 leverage. You can think between 1:30 to a maximum of 1:100 to get the hang of it.
Conclusion
As a trader, you should take extreme care to have enough margin in your account and maintain surplus funds. Proper use of stop losses, position sizing, and continuous monitoring of margin levels helps you to minimize the risk of liquidation.
Keep checking on Fusion’s up-to-date information on margin and leverage since they are subject to change depending on regulatory requirements and market conditions.
Pro Tip
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