Tier1FX represents the branded offering of the online brokerage division of Hogg Capital Investments Limited which is a fully licensed Class II Investment Firm (registration number C 18954) authorized under the Investment Services Act, regulated in Malta by the Malta Financial Services Authority (MFSA) and located at Nu Bis Centre, Mosta Road, Lija LJA9012, Malta. Our authorization may be viewed here: https://www.mfsa.mt/financial-services-register/
Risk Disclaimer
You acknowledge that trading derivative financial instruments, including foreign exchange, futures, options, contracts for differences and commodities carry a substantial potential risk of loss and you understand the risks involved and that you are willing to undertake this risk.You further confirm your understanding that the value of these financial instruments is influenced by the price changes of their underlying reference instruments, that these prices may fluctuate both rapidly and widely, that such factors can be neither predicted nor controlled by any party, and that leverage or "gearing" will disproportionately impact the results of any such transactions.Losses can therefore quickly compound. You will be responsible to ensure your account has sufficient margin to sustain your trading activity. If you are classified by us as a Retail Client, you will henceforth be subject to an ESMA-mandated close out rule on loss making positions when your minimum required margin level decreases to 50%. As a Retail Client you will however be protected by Tier1FX from incurring a negative balance in your trading account.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. 67.06% of our retail investor accounts trading Contracts for Differences have lost money within the past twelve months.
Marketing Disclaimer
Country Restrictions: Tier1FX is authorized to passport its services to all countries within the EU. Retail Investors in Spain should note that due to the complexity and risk associated with trading CFDs, CNMV believes that they are not appropriate for retail investors (https://www.cnmv.es).Tier1FX does not solicit and will never provide its services to applicants from the US and its territories (including American Samoa, Guam, Northern Mariana Islands, Puerto Rico and the US Virgin Islands), Turkey, India and Japan due to existent regulatory restrictions on the provision of FX brokerage services to such countries.
Advisory Disclaimer
Tier1FX (“Tier1”) offers references to third party information providers as a service to the trading public. Unless specifically expressed, Tier1 does not endorse the methodologies, ideas, opinions or recommendations of these third parties. We encourage all traders to carefully review and analyze the third party offerings and claims. Do not accept as fact unexamined assertions or claims. Claims of success or profitability should always be supported by live trading results, not demo account results or compilations of “signals.” Past performance is no guarantee of future success and you should be critical and demanding when reading all promotional offerings made by advisors, traders, bloggers, money managers and third party system vendors. All materials offered to the trading public on our website are offered as general market commentary, are not an offer to trade in any market and do not constitute investment or trading advice. Tier1 expressly disclaims any liability, without limitation, for any losses that arise directly or indirectly from the use of or reliance upon information provided to the trading public on our website.
FAQs
Used Margin, which is just the aggregate of all the Required Margin from all open positions, was discussed in a previous lesson. 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.
What is balance Equity margin free margin and margin level? ›
Equity is the balance of a trading account plus or minus total rolling profit or loss and swap charges. While the broker holds a margin for open orders, the free margin is the funds remaining in the trading account that is not held; in other words, it is funds free to use for new orders.
Can I withdraw my free margin? ›
Free Margin denotes the funds in the Client's account, which may be used to open a position and are available for withdrawal.
What does margin level mean on MetaTrader 4? ›
Put simply, Margin Level indicates how “healthy” your trading account is. It is the ratio of your Equity to the Used Margin of your open positions, indicated as a percentage. As a formula, Margin Level looks like this: (Equity/Used Margin) X 100.
What is the best margin level in Forex? ›
Good Margin Level in Forex Trading
A good margin level is typically considered to be above 100%. A margin level of 100% indicates that a trader's equity equals the used margin, which is the minimum level required to keep positions open.
What happens if I run out of free margin? ›
If you have no free margin, you will not be able to open any new positions and/or your positions will be stopped out. Your account balance can reach zero should the loss on the positions stopped out meet, or exceed, your account balance.
Can I withdraw my equity in forex? ›
The balance equity in Forex trading is the value of the parameter when there are no open trades on the account. If there are no transactions, the equity value is equal to the balance. This is the money that a trader can withdraw from a trading account at any time.
What is the difference between margin level and leverage? ›
Leverage allows you to trade a larger financial position with a smaller sum. Margin, on the other hand, is the initial investment you need to make to open a leveraged trade. Combined, margin and leverage allow you to leverage the funds in your account to potentially generate larger profits than your initial investment.
What is the margin level? ›
Margin level is a risk-management indicator that helps you understand what influence the currently opened positions have on your account. The margin level in your options trading account is a formula that tells you how much of your funds are available to open new trades.
What happens if you lose margin money? ›
If an account loses too much money due to underperforming investments, the broker will issue a margin call, demanding that you deposit more funds or sell off some or all of the holdings in your account to pay down the margin loan.
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 free margin and margin level? ›
Margin Level allows you to know how much of your funds are available for new trades. The higher the Margin Level, the more Free Margin you have available to trade. The lower the Margin Level, the less Free Margin available to trade, which could result in something very bad…
What is the difference between equity and balance in MetaTrader 4? ›
Again, the primary difference between the balance and the equity is that the balance doesn't include opened positions while the equity includes all current changes. So, the equity is a floating value; it could change at each specific time. In MetaTrader 4, the balance is displayed in the Trade and Exposure tabs.
What are the different levels of margin? ›
The three main profit margin metrics are gross profit margin (total revenue minus cost of goods sold (COGS) ), operating profit margin (revenue minus COGS and operating expenses), and net profit margin (revenue minus all expenses, including interest and taxes).
What is a margin level? ›
Margin level is a risk-management indicator that helps you understand what influence the currently opened positions have on your account. The margin level in your options trading account is a formula that tells you how much of your funds are available to open new trades.
What is the margin level in Vantage? ›
What is the level my account must reach to be stopped out via margin call? Vantage will alert you via your MT5 or MT5 Terminal when the 'Margin Level' reaches 80%. If your Margin Level drops to 50%, then your position will be automatically closed via a margin stop out.
What is margin free? ›
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).
