Leverage & Margin Policy
Leverage & Margin Policy
Leverage & Margin Policy
Leverage & Margin Policy
Leverage & Margin Policy
Introduction
Introduction
This Leverage and Margin Policy outlines how GatesFX LTD (“GatesFX,” “we,” “our,” or “us”) manages trading leverage, margin requirements, and risk exposure across all client accounts.
Leverage allows traders to control larger positions with a smaller amount of capital, amplifying both potential gains and losses. This policy ensures clients understand the risks associated with leveraged trading and how margin requirements are applied to maintain account equity and platform stability.
This Leverage and Margin Policy outlines how GatesFX LTD (“GatesFX,” “we,” “our,” or “us”) manages trading leverage, margin requirements, and risk exposure across all client accounts.
Leverage allows traders to control larger positions with a smaller amount of capital, amplifying both potential gains and losses. This policy ensures clients understand the risks associated with leveraged trading and how margin requirements are applied to maintain account equity and platform stability.
2. Understanding Leverage
2. Understanding Leverage
Leverage is expressed as a ratio (for example, 1:100, 1:500, or 1:1000) and determines how much exposure a trader has in relation to their account equity.
For example:
At 1:100 leverage, a $1,000 margin deposit controls $100,000 in market exposure.
At 1:1000 leverage, the same $1,000 deposit controls $1,000,000 in exposure.
While higher leverage provides greater flexibility and potential returns, it also significantly increases risk. GatesFX encourages responsible leverage usage in line with individual trading experience and risk appetite.
Leverage is expressed as a ratio (for example, 1:100, 1:500, or 1:1000) and determines how much exposure a trader has in relation to their account equity.
For example:
At 1:100 leverage, a $1,000 margin deposit controls $100,000 in market exposure.
At 1:1000 leverage, the same $1,000 deposit controls $1,000,000 in exposure.
While higher leverage provides greater flexibility and potential returns, it also significantly increases risk. GatesFX encourages responsible leverage usage in line with individual trading experience and risk appetite.
3. Margin Requirements
3. Margin Requirements
Margin is the amount of capital required to open and maintain a trading position. It is calculated as a percentage of the full trade size based on the leverage chosen.
Example:
A trader using 1:100 leverage on a $100,000 position must maintain a $1,000 margin.
GatesFX automatically calculates and displays required margin before trade execution, allowing clients to manage exposure efficiently.
Margin is the amount of capital required to open and maintain a trading position. It is calculated as a percentage of the full trade size based on the leverage chosen.
Example:
A trader using 1:100 leverage on a $100,000 position must maintain a $1,000 margin.
GatesFX automatically calculates and displays required margin before trade execution, allowing clients to manage exposure efficiently.
4. Margin Level and Monitoring
4. Margin Level and Monitoring
The Margin Level is a dynamic indicator of account health, calculated as:
The Margin Level is a dynamic indicator of account health, calculated as:
Margin Level =
Margin Level =
Equity
Equity
Used Margin
Used Margin
x 100%
x 100%
Above 100%: Account is healthy; all positions remain open.
Below 100%: Margin Warning — clients should monitor or add funds.
Below Stop-Out Level: Automatic liquidation may occur (see Section 5).
Clients are responsible for monitoring their margin level and maintaining sufficient equity to keep positions open.
Above 100%: Account is healthy; all positions remain open.
Below 100%: Margin Warning — clients should monitor or add funds.
Below Stop-Out Level: Automatic liquidation may occur (see Section 5).
Clients are responsible for monitoring their margin level and maintaining sufficient equity to keep positions open.
5. Margin Call and Stop-Out Mechanism
5. Margin Call and Stop-Out Mechanism
To protect clients from excessive losses and ensure platform integrity, GatesFX employs automatic margin management systems:
Margin Call Level: 80%
When the margin level reaches 80%, clients are notified to deposit additional funds or reduce exposure.Stop-Out Level: 30%
When the margin level falls to 30%, open positions are automatically closed, starting with the largest losing trade, until the account returns to compliance.
This process prevents further losses and may trigger the Negative Balance Protection mechanism if equity falls below zero.
To protect clients from excessive losses and ensure platform integrity, GatesFX employs automatic margin management systems:
Margin Call Level: 80%
When the margin level reaches 80%, clients are notified to deposit additional funds or reduce exposure.Stop-Out Level: 30%
When the margin level falls to 30%, open positions are automatically closed, starting with the largest losing trade, until the account returns to compliance.
This process prevents further losses and may trigger the Negative Balance Protection mechanism if equity falls below zero.
6. Adjustments and Risk Management
6. Adjustments and Risk Management
GatesFX reserves the right to:
Adjust leverage settings or margin requirements without prior notice during periods of high market volatility, news events, or low liquidity.
Reduce leverage on specific instruments or accounts where excessive exposure may pose systemic risk.
Apply lower leverage for new accounts, bonus accounts, or promotional programs until verification and risk assessment are complete.
All changes are made in accordance with internal risk management protocols and client protection standards.
GatesFX reserves the right to:
Adjust leverage settings or margin requirements without prior notice during periods of high market volatility, news events, or low liquidity.
Reduce leverage on specific instruments or accounts where excessive exposure may pose systemic risk.
Apply lower leverage for new accounts, bonus accounts, or promotional programs until verification and risk assessment are complete.
All changes are made in accordance with internal risk management protocols and client protection standards.
7. Hedged Positions
7. Hedged Positions
Fully hedged positions (where equal long and short positions are held on the same instrument) typically require minimal margin. However, due to potential market gaps or spread widening, temporary margin may still be required to maintain both sides of the trade.
Fully hedged positions (where equal long and short positions are held on the same instrument) typically require minimal margin. However, due to potential market gaps or spread widening, temporary margin may still be required to maintain both sides of the trade.
8. Weekend and Holiday Adjustments
8. Weekend and Holiday Adjustments
During weekends, public holidays, or major geopolitical events, liquidity providers may adjust margin requirements or reduce leverage. GatesFX may apply similar temporary restrictions to safeguard clients against price gaps and slippage when markets reopen.
During weekends, public holidays, or major geopolitical events, liquidity providers may adjust margin requirements or reduce leverage. GatesFX may apply similar temporary restrictions to safeguard clients against price gaps and slippage when markets reopen.
9. Client Responsibility
9. Client Responsibility
Clients are solely responsible for monitoring their open positions, understanding leverage implications, and ensuring adequate margin at all times.
Failure to maintain sufficient margin may result in the automatic closure of open trades and potential loss of capital.
GatesFX strongly recommends that clients:
Use leverage conservatively;
Implement stop-loss orders;
Avoid overexposure during high-volatility periods.
Clients are solely responsible for monitoring their open positions, understanding leverage implications, and ensuring adequate margin at all times.
Failure to maintain sufficient margin may result in the automatic closure of open trades and potential loss of capital.
GatesFX strongly recommends that clients:
Use leverage conservatively;
Implement stop-loss orders;
Avoid overexposure during high-volatility periods.
10. Disclaimer of Liability
10. Disclaimer of Liability
Trading on margin carries a high level of risk and may not be suitable for all investors.
While GatesFX provides leverage flexibility, we are not responsible for losses resulting from market movements, price gaps, or client mismanagement of margin.
Clients are encouraged to review the Risk Disclosure Statement and understand all associated trading risks before engaging in leveraged trading.
Trading on margin carries a high level of risk and may not be suitable for all investors.
While GatesFX provides leverage flexibility, we are not responsible for losses resulting from market movements, price gaps, or client mismanagement of margin.
Clients are encouraged to review the Risk Disclosure Statement and understand all associated trading risks before engaging in leveraged trading.
11. Policy Updates
11. Policy Updates
GatesFX LTD reserves the right to amend or update this policy at any time to reflect operational, legal, or regulatory changes. Any updates will be published on the official GatesFX website and shall take effect immediately upon publication. Continued use of our services constitutes acceptance of any changes.
GatesFX LTD reserves the right to amend or update this policy at any time to reflect operational, legal, or regulatory changes. Any updates will be published on the official GatesFX website and shall take effect immediately upon publication. Continued use of our services constitutes acceptance of any changes.
Disclaimer
This Leverage and Margin Policy should be read in conjunction with our Client Agreement, Risk Disclosure Statement, and Negative Balance Protection Policy. By opening an account with GatesFX, clients acknowledge that they fully understand and accept the leverage and margin requirements detailed above.
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GatesFX is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services.
Registration number: 00396 IBC 2024
Copyright 2025. GatesFX LTD.
All rights reserved.
Registration Address:
Ground floor, The Sotheby Building,
Rodney Village, Rodney Bay,
Gros Islet, St. Lucia
AML Policy
Risk Disclosure
Privacy Policy
Refund Policy
Opening an Account
GatesFX LTD, is an Authorized Financial Services Provider (“FSP”) licensed and regulated by the Financial Sector Conduct Authority (“FSCA”) in South Africa (FSP No. 46087).
GatesFX LTD is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services and provides access to trading services in accordance with applicable laws and regulations.
Client accounts are onboarded through GatesFX LTD, a company incorporated in Saint Lucia (Reg. No. 00396 ICB 2024). By opening an account with GatesFX LTD, you confirm that you are at least eighteen (18) years of age (or the legal age in your jurisdiction), that you are acting of your own free will without solicitation from GatesFX, and that you will ensure compliance with all applicable local laws and regulations.
!
Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with funds you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.
Restricted Countries: GatesFX LTD does not provide services for residents of certain countries, including Israel, New Zealand, Iran, and North Korea (Democratic Peoples's Republic of Korea), or any country where such distribution or use would be contrary of local law or regulation. Furthermore, GatesFX LTD does not solicit citizens of the Untied States of America. Please check with your local jurisdiction to determine if you are permitted to open an account with GatesFX LTD.
It is your responsibility to determine whether you are permitted to open an account with GatesFX.
Disclaimer: The information provided herein reflects personal opinions and ideas and does not constitute a recommendation to purchase financial services or guarantee the performance or outcomes of future transactions. This material is not intended to be interpreted as financial advice. While every effort has been made to ensure the accuracy, validity and completeness of the information, no guarantees are provided and no liability is accepted for any losses incurred as a result of investments made based on this material. Nothing contained on this site should be considered or construed as professional advice from GatesFX LTD, its affiliates, directors, officer, or employees.
GatesFX is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services.
Registration number: 00396 IBC 2024
Copyright 2014-2025. GatesFX LTD. All rights reserved. Registration Address: Ground floor, The Sotheby Building, Rodney Village, Rodney Bay, Gros Islet, St. Lucia
AML Policy
Risk Disclosure
Privacy Policy
Refund Policy
Opening an Account
GatesFX LTD, is an Authorized Financial Services Provider (“FSP”) licensed and regulated by the Financial Sector Conduct Authority (“FSCA”) in South Africa (FSP No. 46087).
GatesFX LTD is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services and provides access to trading services in accordance with applicable laws and regulations.
Client accounts are onboarded through GatesFX LTD, a company incorporated in Saint Lucia (Reg. No. 00396 ICB 2024). By opening an account with GatesFX LTD, you confirm that you are at least eighteen (18) years of age (or the legal age in your jurisdiction), that you are acting of your own free will without solicitation from GatesFX, and that you will ensure compliance with all applicable local laws and regulations.
!
Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with funds you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.
Restricted Countries: GatesFX LTD does not provide services for residents of certain countries, including Israel, New Zealand, Iran, and North Korea (Democratic Peoples's Republic of Korea), or any country where such distribution or use would be contrary of local law or regulation. Furthermore, GatesFX LTD does not solicit citizens of the Untied States of America. Please check with your local jurisdiction to determine if you are permitted to open an account with GatesFX LTD.
It is your responsibility to determine whether you are permitted to open an account with GatesFX.
Disclaimer: The information provided herein reflects personal opinions and ideas and does not constitute a recommendation to purchase financial services or guarantee the performance or outcomes of future transactions. This material is not intended to be interpreted as financial advice. While every effort has been made to ensure the accuracy, validity and completeness of the information, no guarantees are provided and no liability is accepted for any losses incurred as a result of investments made based on this material. Nothing contained on this site should be considered or construed as professional advice from GatesFX LTD, its affiliates, directors, officer, or employees.
GatesFX is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services.
Registration number: 00396 IBC 2024
Copyright 2025. GatesFX LTD.
All rights reserved.
Registration Address:
Ground floor, The Sotheby Building,
Rodney Village, Rodney Bay,
Gros Islet, St. Lucia
AML Policy
Risk Disclosure
Privacy Policy
Refund Policy
Opening an Account
GatesFX LTD, is an Authorized Financial Services Provider (“FSP”) licensed and regulated by the Financial Sector Conduct Authority (“FSCA”) in South Africa (FSP No. 46087).
GatesFX LTD is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services and provides access to trading services in accordance with applicable laws and regulations.
Client accounts are onboarded through GatesFX LTD, a company incorporated in Saint Lucia (Reg. No. 00396 ICB 2024). By opening an account with GatesFX LTD, you confirm that you are at least eighteen (18) years of age (or the legal age in your jurisdiction), that you are acting of your own free will without solicitation from GatesFX, and that you will ensure compliance with all applicable local laws and regulations.
!
Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with funds you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.
Restricted Countries: GatesFX LTD does not provide services for residents of certain countries, including Israel, New Zealand, Iran, and North Korea (Democratic Peoples's Republic of Korea), or any country where such distribution or use would be contrary of local law or regulation. Furthermore, GatesFX LTD does not solicit citizens of the Untied States of America. Please check with your local jurisdiction to determine if you are permitted to open an account with GatesFX LTD.
It is your responsibility to determine whether you are permitted to open an account with GatesFX.
Disclaimer: The information provided herein reflects personal opinions and ideas and does not constitute a recommendation to purchase financial services or guarantee the performance or outcomes of future transactions. This material is not intended to be interpreted as financial advice. While every effort has been made to ensure the accuracy, validity and completeness of the information, no guarantees are provided and no liability is accepted for any losses incurred as a result of investments made based on this material. Nothing contained on this site should be considered or construed as professional advice from GatesFX LTD, its affiliates, directors, officer, or employees.
GatesFX is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services. Registration number: 00396 IBC 2024
Copyright 2025. GatesFX LTD. All rights reserved. Registration Address: Ground floor, La Place Creole Building, Rodney Village, Rodney Bay, Gros Islet, St. Lucia
AML Policy
Risk Disclosure
Privacy Policy
Refund Policy
Opening an Account
GatesFX LTD, is an Authorized Financial Services Provider (“FSP”) licensed and regulated by the Financial Sector Conduct Authority (“FSCA”) in South Africa (FSP No. 46087).
GatesFX LTD is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services and provides access to trading services in accordance with applicable laws and regulations.
Client accounts are onboarded through GatesFX LTD, a company incorporated in Saint Lucia (Reg. No. 00396 ICB 2024). By opening an account with GatesFX LTD, you confirm that you are at least eighteen (18) years of age (or the legal age in your jurisdiction), that you are acting of your own free will without solicitation from GatesFX, and that you will ensure compliance with all applicable local laws and regulations.
!
Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with funds you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.
Restricted Countries: GatesFX LTD does not provide services for residents of certain countries, including Israel, New Zealand, Iran, and North Korea (Democratic Peoples's Republic of Korea), or any country where such distribution or use would be contrary of local law or regulation. Furthermore, GatesFX LTD does not solicit citizens of the Untied States of America. Please check with your local jurisdiction to determine if you are permitted to open an account with GatesFX LTD.
It is your responsibility to determine whether you are permitted to open an account with GatesFX.
Disclaimer: The information provided herein reflects personal opinions and ideas and does not constitute a recommendation to purchase financial services or guarantee the performance or outcomes of future transactions. This material is not intended to be interpreted as financial advice. While every effort has been made to ensure the accuracy, validity and completeness of the information, no guarantees are provided and no liability is accepted for any losses incurred as a result of investments made based on this material. Nothing contained on this site should be considered or construed as professional advice from GatesFX LTD, its affiliates, directors, officer, or employees.
GatesFX is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services.
Registration number: 00396 IBC 2024
Copyright 2025. GatesFX LTD.
All rights reserved.
Registration Address:
Ground floor, The Sotheby Building,
Rodney Village, Rodney Bay,
Gros Islet, St. Lucia
AML Policy
Risk Disclosure
Privacy Policy
Refund Policy
Opening an Account
GatesFX LTD, is an Authorized Financial Services Provider (“FSP”) licensed and regulated by the Financial Sector Conduct Authority (“FSCA”) in South Africa (FSP No. 46087).
GatesFX LTD is an international broker regulated by the International Financial Centre of St. Lucia, ensuring transparency and compliance with international standards of the company's services and provides access to trading services in accordance with applicable laws and regulations.
Client accounts are onboarded through GatesFX LTD, a company incorporated in Saint Lucia (Reg. No. 00396 ICB 2024). By opening an account with GatesFX LTD, you confirm that you are at least eighteen (18) years of age (or the legal age in your jurisdiction), that you are acting of your own free will without solicitation from GatesFX, and that you will ensure compliance with all applicable local laws and regulations.
!
Risk Warning: Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with funds you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary. Please read and ensure you fully understand our Risk Disclosure.
Restricted Countries: GatesFX LTD does not provide services for residents of certain countries, including Israel, New Zealand, Iran, and North Korea (Democratic Peoples's Republic of Korea), or any country where such distribution or use would be contrary of local law or regulation. Furthermore, GatesFX LTD does not solicit citizens of the Untied States of America. Please check with your local jurisdiction to determine if you are permitted to open an account with GatesFX LTD.
It is your responsibility to determine whether you are permitted to open an account with GatesFX.
Disclaimer: The information provided herein reflects personal opinions and ideas and does not constitute a recommendation to purchase financial services or guarantee the performance or outcomes of future transactions. This material is not intended to be interpreted as financial advice. While every effort has been made to ensure the accuracy, validity and completeness of the information, no guarantees are provided and no liability is accepted for any losses incurred as a result of investments made based on this material. Nothing contained on this site should be considered or construed as professional advice from GatesFX LTD, its affiliates, directors, officer, or employees.
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