Leverage & Margin
Calibrated to instrument, account type and jurisdiction — and explained plainly.
What is leverage?
Leverage lets you control a larger position than the cash you put down. It is expressed as a ratio. With 10:1 leverage, a $1,000 margin deposit controls a $10,000 position. If the position moves 1% in your favour, you gain $100 on your $1,000 — a 10% return. If it moves 1% against you, you lose $100 — also a 10% loss.
Leverage does not change the size of market moves. It changes how much of your capital each move represents.
What is margin?
Initial margin is the deposit required to open a position. It is calculated from the leverage on that instrument and the position size.
Maintenance margin is the minimum equity the account must hold to keep that position open. If your equity falls toward this level due to adverse market movement, the account enters a margin call state.
A margin call is a warning that your account is running out of margin and that you should either deposit additional funds or reduce position size before the stop-out level is reached.
Available leverage varies by instrument, account type and regulatory requirements. Please contact us for current leverage ratios applicable to your profile.
Margin call and stop-out
If losses continue and account equity drops below the stop-out level, open positions are automatically closed by the system — starting with the largest losing position — until margin requirements are restored. Stop-outs exist to protect both client and broker from negative equity in fast markets.
Stop-out is not a substitute for risk management. In gapped or illiquid markets, fills may occur at prices materially worse than the stop-out level.
Retail client accounts at Monolith Market are subject to negative balance protection. This means that even if market conditions cause your account balance to fall below zero — for example, during a gap or extreme market event — you will not be liable for losses exceeding your deposited capital.
Negative balance protection applies to retail clients as defined under applicable regulation. Professional clients may not benefit from this protection. Contact us to confirm the terms applicable to your account type.
Leverage amplifies both profits and losses. A small adverse market movement can result in the loss of your entire margin. Ensure you fully understand leverage risk before trading. Never trade with capital you cannot afford to lose.
Plan your trade with our indicative calculators
Estimate pip value, margin requirements and potential profit & loss before opening a position.
Have a question on our trading conditions?
Risk NoticeTrading Forex and CFDs involves significant risk and may not be suitable for all clients. Leverage can amplify losses. Please ensure you understand the risks before trading.