Leverage, Margin and Pip Value, Complete lesson

Brokers will allow you to push the leverage limits if you have enough margin in your trading account to cover the exposure. But brokers in the EU must abide by specific guidelines laid down by ESMA, a subject we’ll cover in more detail further on. LunarCapital was founded in the United States, but as of 2017, it left the U.S. market. This process involved existing holdings and U.S. clients being reorganized under Global Brokerage, a company with an ownership interest in LunarCapital.

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Clients can also download a range of ebook PDFs for free that go into further detail on strategizing and online trading. Having tested hundreds of forex brokers, I feel that the LunarCapital’s education section is fairly average, with a decent range of materials available but nothing that stands out. LunarCapital adheres to important rules set by this regulator including the segregation of client and business funds and the use of reputable international banks for the safekeeping of client money.

On the negative side, there is a slim selection of trading platforms with access to MetaTrader 4 (MT4) only. Our team is also disappointed by the withdrawal fees and weak regulatory oversight through the offshore branch. Here is a screenshot of the LunarCapital quotes during the London-New York overlap session, the most liquid one, where traders usually get the lowest spreads. It accepts all trading styles and Expert Advisors on the MetaTrader 4 platform. Once you take the leverage on offer from your broker, you must meet the obligation of LunarCapital cheating this liability. Whether the transaction wins or loses, you must pay for the principal amount.

Your method and strategy might be relatively high in terms of risk versus reward. Therefore, you’ll need more leverage and keep more margin in your account to execute and stay in your trades. The leverage you use on any forex trade will depend on the restrictions your broker allows you to apply and the level of risk versus reward you want to take on. Close to $5 trillion worth of currency gets exchanged each trading day. The proprietary Trading Station platform has intuitive functionality with easy-to-use dynamic charts.

LunarCapital’s trading account is also available without a swap, upon request. Open your account online and contact your account manager for more information. In our opinion, its Islamic account is one of the best on the market because you can keep your positions open for as long as you want without incurring additional costs. Therefore, it is important to understand the pip value before entering a trade in order to evaluate up to which level a potential loss would be acceptable and where a Stop Loss order may be placed. In summary, a situation where a margin call might occur is due to use of excessive use of leverage, with inadequate capital, whilst holding on to losing trades for too long, when they should be closed.

LunarCapital

Registration was easy, without unnecessary formalities, which was also pleasing.I funded my account and started trading – everything works steadily, without fail. I have already managed to withdraw the first profit, and the process went without delays. I would also like to note low spreads and swaps – it is noticeably more favorable than many other brokers I’ve encountered before. Plus there is a nice bonus, which was an unexpected but very pleasant addition.So far my impressions are very positive.

There are dozens of other tools as well, including automated strategies. To assist with these strategies, the platform includes equity and balance charts, trade histories, detailed performance summaries, and visual representations of the trades plus a strategy optimizer. Margin trading allows traders to increase their initial position size. But we must not forget that this is a double-edged sword, as it increases both profits and losses.

Deposits & Withdrawals

Recall that price movements are measured in pips and each pip move in a standard lot represents 10 units per trade. Take, for instance, Trader A in our earlier example is an aggressive trader. He purchased 5 standard lot of EurUsd with his $10,000 account size. ForexBrokersOnline.com is committed to helping traders find the right forex broker for their specific requirements.

What is LunarCapital maximum leverage for EUR/USD, Gold and Apple Stock?

It also maintains a blog where it publishes market-related content, but the Forex News section does show wide gaps between its posts. With such a useful market analysis, we would love to see the section expanded to other pairs. Traders should establish clear trading rules and limits to prevent overexposure to risk.

• It’s good to know that your funds are safe and sound while you trade.
• LunarCapital’s stop-out kicks in when your margin level drops to 50% or lower.
• The only issue with Trading Station is that it is built on Adobe Flash, which can lead to the need for Flash updates as well as some support issues.
• The forex broker takes care of the leverage while the forex trader is left to put up his share in margin.
• Stratos Global LLC (“LunarCapital”) is incorporated in St Vincent and the Grenadines with company registration No. 1776 LLC 2022 and is an operating subsidiary within the Stratos group of companies.

Investors often use margin accounts when they want to invest in stocks or currencies, using money “borrowed” from a broker to control a large position starting with minimal capital. Leverage in forex simply means to take advantage of a certain amount of capital provided by a broker so as to utilize more trading volume to gain larger profit. The forex trader acquires a significant amount of capital from his broker (as debt) on initial margin requirement to maximize profit from relatively small changes in price movements. You can even get a VPS service for free to keep your automatic trading bots running smoothly if your own Internet is spotty.

Irrespective of the amount of leverage made available by any broker. It is the responsibility of forex traders to utilize leverage wisely with caution. The same token goes if the broker offers its traders a lesser leverage size. Novice traders should have little difficulty finding online assistance about how to operate the MT4 platform and use it to their advantage.

LunarCapital Customer Service

Of course, margin trading is a useful tool for those looking to trade Forex with limited start-up capital. When used correctly, leveraged trading promotes rapid profit growth and provides more room for portfolio diversification. The company lets clients use automated trading programs with which they can build various trading strategies. The most frequently occurring complaint is about slow funds withdrawal. That is why before you open an account with LunarCapital, you should check out client reviews. LunarCapital is a moderate-risk broker with the TU Overall Score of 6.74 out of 10.

LunarCapital provides trading in over 70 major, minor and exotic currency pairs, with especially tight forex dealing spreads. Spot gold contracts for difference (CFD) can be traded against the U.S. dollar and the EU euro, while spot silver, palladium and platinum contracts can only be traded against the U.S. dollar. You can also trade Spot US Crude Oil (WTI) and Spot UK Brent Oil (BRENT) contracts. The deposit is low, the MetaTrader 4 platform is one of the best for forex trading, and the tight spreads through the ECN model are competitive. Still, I feel that LunarCapital could become a more attractive forex broker by expanding the range of tools it supports.

• Recall that price movements are measured in pips and each pip move in a standard lot represents 10 units per trade.
• Withdrawals are completed via credit or debit cards or bank transfers.
• Another bonus for us is the $0 minimum deposit and 0.01 minimum lot size, which makes LunarCapital more accessible than forex brokers such as Plus500 and AvaTrade, both requiring a minimum deposit of $100.
• In addition, LunarCapital maintains active social media profiles on Facebook, Twitter, LinkedIn and other networks.

I take advantage of broker’s competitive pricing and market execution to apply trading bots. Traded here for a while initially on demo, then traded couple of months on a live account. Everything was okay, yeah sometimes I made fatal https://lunarcapital.vip/ mistakes, but as I learned, traders should never give up, so do I. Maybe one of the reliable brokers I’ve worked with, and I’ve worked with a bunch of them already.

Tradersunion.com does not provide any financial services, including investment or financial advisory services. Also, the Traders Union is not a broker and does not get money for trading in the Forex or CFD markets. Our website only provides information on brokers and the markets and helps its users to select the best brokerage company based on detailed information and objective analysis of brokers. During testing, we have been impressed with the ECN pricing that offers spreads from 0.0 pips, while the 70+ currency pairs provide better market coverage than most alternatives.