Margin & Leverage

Margin is the percentage of your overall position size that we require at UM Capitals as collateral to cover market risks when you open a leveraged position in the market.

This amount will usually vary depending on your leverage level or position size. For instance, a 2% margin means that $2,000 will be able to cover a $100,000 trade position in the market. Our margin requirements are as flexible and accommodative as possible so that you can gain maximum profit opportunity when trading your favorite instruments at UM Capitals.

Dynamic Leverage

  • Rapid Order Execution for Over 99% of All Orders
  • Negative balance protection
  • Monitor your market risk exposure in real-time
  • No margin changes during weekends or holidays

About Leverage

Leverage is simply the ratio between the investment amount and the overall position in the market. The maximum leverage offered at UM Capitals is 1:500, which means that $1,000 in trading capital can control a $50,000 trade position in the market.

When you trade with leverage, you earn profits based on the position you control in the market. In the above case, a 1% price change in your favor will earn you $500. This is effectively a 50% profit on your initial $1,000 capital. That is the magic of leverage.

But Leverage also has its risk, and UM Capitals reserves the right to change the leverage level in our client accounts without notice if such an action can offer or enhance capital protection.

Margin and Leverage Tools

  • UM Capitals Leverage
    UM Capitals investors can choose a leverage level of up to 1:500. Investors can adjust the level of their accounts at any time they wish to do so. As well, margin requirements never change overnight or during weekends and holidays.
  • Leverage Risk
    Leverage is a double-edged sword. It amplifies the profit opportunity, but also boosts risk exposure. We advise our investors to choose an appropriate leverage level that is consistent with their risk profile and trading goals.
  • Margin Monitoring
    At UM Capitals, investors can monitor their used and available margin in real-time so that they are able to make appropriate trading decisions in relation to their open transactions.
  • Margin Call
    UM Capitals has a margin call policy that will alert investors when their usable margin is almost depleted. This is a notification that your available capital may not be sufficient to sustain open positions.
  • Stop-Out Level
    At UM Capitals, we have a negative balance protection policy and we will close out some or all of your positions when your losses exceed your available balance so as to prevent a negative balance.