Exness:Exness forced loss cut level and calculation method Margin maintenance rate and margin call explanation

Exness

We will explain margin calls and forced stop-loss levels in Exness trading. There is also a possibility that you may suddenly be forced to make a loss cut. If you don’t understand the loss cut rules and what the loss cut level is, you won’t be able to get good results.

Loss cut rule

The loss cut rules of Exness are as follows. At overseas FX brokers, if the account balance becomes negative, a zero cut will be activated. There are no bonuses, but the system is very good as there is no margin call. In Exnes, 100% stop-out is a loss cut, so it is very easy to remember. This mechanism is also implemented by xmtrading, fxgt, gemforex, milton, hfm, axiory, iforex, bigboss, fbs, threetrader, easy markets, etc.

zero cut

Exness’s vendor information uses a zero cut system. If some kind of problem occurs and a loss in price exceeds the balance for multiple held positions, the balance will be forcibly reset to 0% (0 yen) at the discretion of the management. Therefore, traders have great peace of mind as there is no risk of incurring debt. It can be used even with maximum leverage.

Margin maintenance rate 0%

The margin maintenance rate, which is a forced loss cut, is 0% in the system. The official website also lists the loss cut level. The stop-out level is the margin maintenance rate when a forced stop-out is activated. When unrealized losses increase and the margin maintenance rate reaches the loss cut level, the position will be automatically closed to prevent further losses. As the number suggests, the loss cut level of 0% cannot be lower than this. You can trade with a large degree of freedom as it can withstand fluctuations in the market, including swap points.

Margin maintenance rate 30% or less

A margin call will occur if the margin maintenance rate is 30% or less. A margin call is a warning that your account is one step away from loss cut when the maintenance margin rate falls below a certain level. Once you reach a margin call, you will not be able to open new positions. In other words, it is a warning message to traders, and there is a possibility of full loss.

Loss cut = full deficit

I explained that the loss cut level with a margin maintenance rate of 0% means that while the margin can be fully used, if the loss is cut, it will be a full loss. Therefore, from the trader’s point of view, it will be a company with a high degree of freedom, but the fund management must be solid. The margin maintenance rate of 0% is less likely to be cut than other companies. In order not to cut losses, trade with a small position relative to the margin and a low effective leverage.

Loss cut level 0% for all stocks

In addition to foreign exchange currency pairs, Exness handles various investment products such as precious metals (gold), virtual currencies (Bitcoin), energy, and indexes, but 0% loss cut is applied to all financial products and functions without exception. It has been. However, keep an eye on the price movements and take measures such as placing a double-balance order or cutting your losses to protect your balance if your balance drops to less than half.

All account types loss cut level 0%

Exness has 5 account types, all of which have a 0% stop loss level. Therefore, there are no differences between accounts. You can rest assured that it is applicable and compatible with many accounts such as professional accounts, low spread accounts, and zero accounts. However, normally, when the margin maintenance rate falls below 50%, you should consider the next action. Add a new one to supplement your margin, or cut your loss. It is important to give yourself some leeway.

Margin call varies by account type

Margin call has a different maintenance rate setting for each account type as follows.

Account TypeMargin CallLoss Cut Level
Standard60%0%
Standard Cent60%0%
Low Spread30%0%
Zero30%0%
Pro30%0%

a formula

In the above, various words such as balance, margin, etc. came out, but it can be calculated with the following formula.

Margin Maintenance Rate (%) = Valid Margin ÷ Required Margin x 100

Equity = Balance + Valuation Gain/Loss (Exchange Gain/Loss + Swap)

Balance = Unused Free Margin + Used Margin Required

Free Margin = Equity Margin – Required Margin Used

Margin Required = Current Rate x Trading Volume ÷ Leverage

How to avoid loss cuts

The truth is that I want to avoid loss cuts as much as possible. If you want to avoid loss cuts, please refer to this. Depending on the environment, it can be efficiently avoided. If you are unsure, first lower the lot and trade from the minimum capital. There are no restrictions on the methods, so investors can trade according to their circumstances. Please refer to the following for details.

Deposit additional funds

If you are getting close to a stop-loss cut, there is a way to make it more bearable by adding margin. By securing a large amount of margin, you can increase the margin maintenance rate and reduce the risk of loss cuts. The more margin you have, the more freedom you have, which is advantageous.

risk reward ratio

There are many traders who end up taking a loss cut without cutting their losses. However, this often does not take into account the risk-reward ratio. When making an entry, decide where you will take profits and where you will cut your losses. It is said that a risk reward ratio of 1:2 or 1:3 is appropriate.

reduce leverage

Exness can be traded with unlimited leverage. If you always trade with unlimited leverage, the risk of loss cut increases. By intentionally trading with low leverage, you will be able to withstand even large unrealized losses. Please trade while adjusting the number of lots.

Benefits of Exness loss cut

In Exness, the loss cut level is 0, so in a sense it can be said that it is easier to fight. Traders have more discretion, so there are no restrictions on how they can play. Therefore, the following benefits will also occur, so let’s take advantage of them and fight.

tolerable

If the loss cut level becomes zero, it means that you can endure that much. If the price range that can be tolerated becomes larger when the market moves backwards after entry, then the market will reverse and the chances of picking up a winning trade will increase. Therefore, it will be a very advantageous point for traders because they can fight even if their losses increase.

Know the amount of loss

In Exness, since the loss cut level is zero in the first place, it is easy to grasp the amount up to the loss cut. After all, traders have the advantage of being able to endure until they lose all their funds, giving them more freedom in how they fight.

Unlimited leverage

Exness has zero loss cut level and unlimited leverage. With Exness, you can continue trading until your funds are almost zero. After all, you can also make gambling trades, so if you win with unlimited leverage, you have the potential to greatly increase your profits.

Open an account for free

You can open an account with Exness for free. Gambling trading is also possible, and there is a possibility that you can increase your money at once, so it is a highly recommended broker. I hope you can refer to the following articles.

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