FBS: Overseas Forex Leverage Rules and the Advantages and Disadvantages of Maximum Leverage, Zero Cut and Loss Cut Restrictions and Regulations, How to Change Them

FBS

With FBS, the maximum leverage is 3000x, making it possible to perform high leverage trades among the world’s FX brokers. However, there are certain rules and restrictions regarding this leverage, so if you are not careful, you will not be able to trade at 3000x, so be careful.

Maximum leverage by account type

Please note that FBS has a fixed maximum leverage for each account type. Please note that only the standard account can use leverage of 3000x. Be careful as the risk increases as you increase the currency trading volume and lot to a high level.

Standard3000
Cent1000
Pro2000

leverage limit

With FBS, you need to be careful as there will generally be some leverage restrictions in the following cases. This is also stated on the official website, so please check the impact before using the service. Leverage limits are also used by other companies such as xmtrading, exness, fxgt, axiory, titanfx, and iforex.

When using deposit bonus

FBS limits leverage to a maximum of 500x when using a deposit bonus. Maximum leverage of 3000x and deposit bonus cannot be used together.

political economy events

The market fluctuates greatly when there are important economic indicators, such as policy interest rates or the unemployment rate. At this time, leverage will be temporarily limited. Leverage is similarly severely limited when political events occur.

account balance

With FBS, leverage is limited by the amount of account balance. If your account balance exceeds $200, you cannot maintain the maximum leverage of 3000x. This high leverage only works in situations where small amounts are traded.

BalanceMax Leverage
0 – 200$3000
200 – 2000$2000
2000 – 5000$1000
5000 – 30000$500
30000$ – 200

trading products

In FBS, the maximum leverage is limited depending on the trading product due to management. Currency pairs can actually take advantage of the maximum leverage of 3000x. Please note that other investment products have overwhelmingly reduced leverage. When looking at the calculations by stock, virtual currencies have the largest restrictions. Energy is 200x higher and stocks are 100x higher. Precious metals are 333x and stock indexes are 100x. Currently, the currency pair is the largest and attractive at 3000x. Generally, if you have a large loss on an order, you will receive a loss cut.

Forex3000
Metal333
Energy200
Indice100
Stocks100
Crypto5

How to check leverage

You can check by logging in to your account page and going to “Account Settings” for the account you want to check. Please note that you cannot check this with a trading tool. You can check the latest leverage and transaction size individually. For beginners, we recommend keeping it as low as possible, so you can make a good investment from just $1 in Japan, so start with a low one. You can start with scalping or a standard account.

How to change leverage

You can change the leverage by logging in to your account page and changing the “Leverage” for the account you want to change. However, there are different upper limits depending on the account type, content (stock) category, and type you select, so please be careful how you use it. Depending on the stock in question, there may be a lot of liquidity. Be careful if you are trading multiple stocks. If you are a professional, you will at least consider the risks involved. However, since they are licensed by the Financial Services Agency, they use zero cuts, so it is safe.

Number of positions held

There is no leverage limit based on the number of positions held. Also, since it is not affected by the size of the margin, there is no leverage limit even if you have unrealized losses. FBS allows you to hold up to 200 positions. For reference, you can check the details and overview in advance from the home page, so check it out. Take advantage of the unlimited 1000x leverage method to start with a small amount of capital and gradually increase it.

Loss cut criteria

Below are the margin call levels and stop loss application levels for each account type at FBS. Stop loss is a mechanism for forced settlement. When the following percentage of the margin is reached, the account will be forced to settle. A margin call is like a warning and does not pose any risk, but it is a signal that the stop loss is approaching. Generally, the account will be forced to settle at the end. This is something you should definitely pay attention to in financial services. Be sure to keep an eye on economic indicators in the news.

Loss CutMargin Call
Standard40%20%
Cent40%20%
Pro40%20%

What is margin call?

A margin call is a warning that occurs when unrealized losses increase significantly. Traders are not subject to any restrictions when this warning occurs. However, it means that the loss cut is approaching, so it is time to decide whether to cut the loss or add funds.

What is loss cut?

Stopout means forced liquidation. This is a measure to prevent a total loss by performing forced settlement when a certain percentage of the margin is reached. Traders cannot prevent this, they have no choice but to accept it. Therefore, traders must cut their losses or add funds before this happens.

What is the zero cut system?

Zero cut is an emergency measure in which FBS will compensate for the excess amount in the event of a negative amount exceeding the deposit amount. What this means is that there is no possibility of the trader incurring any debt. In order for the zero cut to be activated, the margin must be negative.

Zero cut activation order

The order in which zero cuts are triggered is margin call ⇒ stop loss ⇒ zero cut. The most important thing for traders is to take measures to prevent stop loss first. The decision to stop loss or to put in capital will depend on the market. If the market continues to move too severely against the trend, it is safe to stop loss, and if it looks like it is about to reverse, it is safe to add capital. Some overseas FX markets offer leverage of up to 5,000 times. Keep it as low as possible at first.

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