Balance
Balance represents the account value generated by deposits, withdrawals and closed positions.
Example
$1,000 balance + $135 closed profit = $1,135 balance
Learn the essential concepts behind leveraged trading, account values, trading costs, order types and risk management on the FXC trading platform.
Leverage allows you to control a position with a value greater than the amount of capital used as margin. FXC clients can select available leverage during registration and may request a leverage change by contacting FXC support.
$1 margin can control up to $100 of exposure.
$1 margin can control up to $500 of exposure.
$1 margin can control up to $1,000 of exposure.
The following EUR/USD example demonstrates how leverage can reduce the margin required to open a position.
Calculate the position value
100,000 × 1.15649 = $115,649Apply 1:1000 leverage
$115,649 ÷ 1,000 = $115.65Additional costs such as spread may also affect available equity and free margin.
Balance represents the account value generated by deposits, withdrawals and closed positions.
Equity represents the current value of your trading account, including unrealized profit or loss from open positions.
Credit represents bonus funds credited to the trading account according to the applicable FXCentrum bonus terms and conditions.
Margin is the portion of your account funds reserved to maintain currently open leveraged positions.
Free Margin represents funds currently available for opening additional positions or absorbing market movements.
Margin Level compares your Equity with the amount of margin currently being used by open positions.
| Term | What It Shows | Does It Change With Open Trades? |
|---|---|---|
| Balance | Value after closed trades and account transactions | No |
| Equity | Current real-time account value | Yes |
| Used Margin | Funds reserved for open positions | Yes |
| Free Margin | Funds available for additional exposure | Yes |
| Margin Level | Relationship between Equity and Used Margin | Yes |
Negative Balance Protection is designed to prevent an eligible trading account from remaining below zero because of trading losses, including situations involving significant volatility or market gaps, subject to the applicable FXCentrum terms.
The spread is the difference between the Bid and Ask price of an instrument.
A swap is an overnight financing adjustment that may be charged or credited when a position remains open beyond the applicable rollover time.
The value depends on the instrument and whether the position is long or short.
Commissions are trading fees that may be charged for executing transactions.
A pip is a standard unit used to measure price movement in forex. For most major currency pairs quoted to five decimal places, one pip corresponds to the fourth decimal place.
Trading volume is commonly measured in lots.
Contract Value represents the total market value of the underlying position before leverage is applied.
A symbol is the ticker or code used to identify an instrument on the trading platform.
The Ask price is generally the price used when opening a Buy position or closing a Sell position.
The Bid price is generally the price used when opening a Sell position or closing a Buy position.
A long position is opened when a trader expects the price of an instrument to increase.
A short position is opened when a trader expects the price of an instrument to decrease.
A Bull Market generally describes a prolonged period of rising prices.
A Bear Market generally describes a prolonged period of falling prices.
Instant execution means submitting an order to enter the market immediately at the available market price, subject to execution conditions.
A Pending Order allows you to define a future price at which you want an order to be triggered.
Used when you expect the market to fall first and then potentially rise.
Used when you expect the market to rise first and then potentially fall.
Often used when a trader wants confirmation of upward price movement before entering a long position.
Often used when a trader wants confirmation of downward price movement before entering a short position.
| Order | Direction | Entry Price |
|---|---|---|
| Buy Limit | Buy | Below current price |
| Sell Limit | Sell | Above current price |
| Buy Stop | Buy | Above current price |
| Sell Stop | Sell | Below current price |
Take Profit is an instruction designed to close a position when the market reaches a predefined favorable level.
Stop Loss is designed to close a position when the market reaches a predefined adverse level, helping limit potential losses.
A Trailing Stop is a dynamic Stop Loss designed to move with the market when price develops in your favor, according to the selected distance.
When a position has already moved into profit, some traders move their Stop Loss beyond the entry price. This can help protect part of an unrealized gain if the market reverses.
Stop Loss orders do not guarantee execution at the exact requested price during all market conditions.
A Margin Call is a warning that the account’s available margin has fallen significantly and the trader may need to reduce exposure or add funds.
Stop Out occurs when the Margin Level reaches the applicable threshold and positions may begin to close automatically to reduce account exposure.
| Account Type | Margin Call | Stop-Out |
|---|---|---|
| Standard FXC Accounts | 50% | 30% |
| ECN Accounts | 100% | 50% |
Rollover may occur when the underlying futures contract approaches expiration and exposure is transferred to the next available contract. Any price difference may be reflected through an adjustment designed according to the applicable instrument specifications.
Leveraged trading involves substantial risk. Higher leverage reduces margin requirements but increases market exposure relative to your deposited capital. Even relatively small price movements can therefore have a significant impact on your account.
Always consider position size, available margin and appropriate risk management before entering a trade.
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