What is loss-cutting?

In FX trading, there is a possibility of incurring large losses when the market fluctuates rapidly in a direction opposite to the customer’s expectations.
In order to minimize the expansion of losses, when losses exceed a certain level, the position held is forcibly closed out, which is called loss-cutting.
At YEWTrading, loss-cutting occurs when the margin maintenance ratio falls below 60%. In our company, when the “effective margin” displayed in the account status of the trading screen falls below the “loss cut value”, the loss cut will take place.

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