Your capital, margin and risk exposure

Published On - January 12, 2020

NEWTRADERLAB Uncategorized

Balance (B)

The funds in your account including all deposits, positive swaps and profits from closed trades and less all withdrawals, negative swaps, losses from closed trades and any other commissions/charges.

Equity (E)

Initially, equity is your initial deposit. However, as you trade with your platform, equity will be your account balance plus profits or minus loss from currently open trades (unrealized P/L). This is the actual value of your account at any given time and fluctuates with market movement.

Margin (M)

The amount of funds (in your account’s base currency) required to open a trade. M = Position size / L

Margin serves as collateral, ensuring that you can sustain and cover potential losses on your open trades with the funds available in your account.

Margin Level (ML)

The percentage ratio between your account’s Equity and Margin. ML = E / M * 100%

Free Margin (FM)

The funds available for opening new trades. FM = B – E – M

Leverge (L)

The ratio between your own funds and the actual traded position size. E.g 1:50 leverage means that you can buy/sell a currency for 2% of its value.

New Trader Lab is a trading name of Hogg Capital Investments Ltd, a fully licensed Class II Investment Firm (registration number C 18954) authorized and regulated in Malta by the Malta Financial Services Authority (MFSA) under the Investment Services Act and located at Nu Bis Centre, Mosta Road, Lija LJA9012, Malta. The Company is also authorized to passport its services in many EU Member States.
https://9dc.es/patinaje/ To view the license, please visit this link..

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 NewTraderLab 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. 79.13% of our retail investor accounts trading Contracts for Differences have lost money within the past twelve months.

Marketing Disclaimer

Country Restrictions: NewTraderLab 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). NewTraderLab 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

NewTraderLab offers references to third party information providers as a service to the trading public. Unless specifically expressed, NewTraderLab 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.