Account & Risk management

What leverage options are available at Born2trade?

‍Born2trade offers different leverage levels depending on your account type and the instrument you are trading:

• Account leverage is the maximum leverage available for your trading account. It is set when your account is opened and can always be viewed in your Personal area and trading platform.
  
• Instrument-specific leverage applies to each product individually. You can check the exact leverage for each instrument in the instrument specifications on our website or in your trading platform.

Leverage allows you to control larger positions with a smaller margin, but it also increases both potential profits and risks. Using higher leverage can amplify your exposure, while lower leverage reduces risk but requires more margin.

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What does margin level mean, and how is it calculated?

‍Margin level shows the status of your trading account and how close you are to a Margin Call or Stop Out. It is expressed as a percentage and calculated using the formula:

Margin Level = (Equity ÷ Used Margin) × 100%

• Equity = Your account balance plus or minus any profit/loss from open trades.
  
• Used Margin = The total margin currently tied up in your open positions.
  

📌 Example: If your Equity is $1,000 and your used margin is $500, your margin level is (1,000 ÷ 500) × 100% = 200%.

At Born2trade, a 100% margin level triggers a Margin Call notification, and if it falls to 50%, the Stop Out process begins.

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How do I calculate margin requirements?

‍You don’t need to calculate margin manually, as both platforms show it directly:

• MT5: Right-click the instrument in Market Watch → Specification. Here you'll find the margin requirement for one lot, automatically converted into your account's base currency.
  
• Born2trade X: When you select your trade size, the required margin is calculated dynamically and displayed on the order ticket before you place it.
  

📌 Tip: Margin requirements vary depending on the instrument and leverage, so always check before opening a position.

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What is free margin, and how is it calculated?

‍Free margin = Equity – Used Margin. It is the amount available to open new positions.

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How do I calculate profit/loss for CFD positions?

‍Profit and loss (P/L) for CFD trades is calculated as the difference between the opening and closing prices multiplied by the contract size and the number of lots.

The general formula is:

P/L = (Closing Price – Opening Price) × Contract Size × Number of Lots

• For a Buy (long) trade: If the closing price is higher than the opening price, you make a profit. If it is lower, you take a loss.
  
• For a Sell (short) trade: The calculation is reversed. If the closing price is lower than the opening price, you make a profit. If it is higher, you take a loss.
  

📌 Example:‍

You buy 1 lot of EUR/USD (100,000 units) at 1.1000 and close at 1.1050.

P/L = (1.1050 – 1.1000) × 100,000 × 1 = $500 profit.

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How does leverage affect my Stop Out?

‍Higher leverage lowers margin requirements but increases the risk of Stop Out if trades move against you.

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What happens when my account has no free margin?

‍You cannot open new positions, and existing positions may be closed if a Stop Out is triggered.

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Is a free margin required to lock positions in my trading account?

‍Yes. Free margin is required to maintain both new and locked (hedged) positions.

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Why did I get a Margin Call when my trading account appears above the Margin Call threshold?

‍Market volatility, spreads, and swaps can temporarily reduce Equity, causing your margin level to fall below the threshold.

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What is the difference between Balance and Equity in my account?

‍Balance is your account total excluding open trades. Equity = Balance ± Floating P/L of open positions.

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Is it possible to lose more than my account balance when trading CFDs?

‍In extreme market conditions, losses may exceed your account balance. Born2trade provides negative balance protection to limit this risk.

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What if my account experiences a Stop Out due to an EA or copy-trading strategy?

‍Stop Outs apply regardless of whether trades are manual, automated, or copied. Monitor your margin and risks carefully.

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Can Born2trade compensate for the amount lost during a Stop Out?
No. Stop Out losses cannot be reimbursed, as they result from trading risk.

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When will I receive my account statements?

‍Statements are sent automatically by email, daily and monthly.

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How can I generate trading account statements?

• In MT5: Open the Account History tab, right-click anywhere inside the window, and select Save as Detailed Report. This will generate a downloadable statement of your trading history.
  
• In Born2trade X: Click the download icon in the bottom-right corner of the trading panel, then select your preferred date range and format to generate a custom statement.
  
• In the Personal area: You can log in to your Born2trade Personal area at any time to view your full trading history by account.
  

📌 Tip: Statements can be customised by date range, making it easy to track trading performance or share records for tax purposes.