Leverage Terms & Conditions

This article explains the terms, conditions, and rules governing the use of leverage on Capital Street FX trading accounts, including how leverage is applied and the responsibilities of clients when trading with leveraged funds.

Understanding Leverage

Leverage allows clients to control a larger trading position with a smaller amount of deposited capital. It increases market exposure but also amplifies both potential profits and potential losses.

Leverage is assigned based on account type, regulatory requirements, and internal risk policies.

Leverage Assignment

Leverage levels may vary depending on:

• Account classification

• Client’s country of residence

• Regulatory restrictions

• Active promotions or bonus programs

Capital Street FX reserves the right to adjust leverage levels at any time.

Client Responsibilities

Clients using leverage are responsible for:

• Monitoring margin levels

• Understanding the risk of amplified losses

• Maintaining sufficient free margin to support open positions

Failure to manage leveraged positions properly may result in margin calls or automatic position closures.

Margin Call & Stop-Out Rules

When equity falls below a defined margin level:

• A margin call may be triggered as a warning

• If equity continues to fall, positions may be automatically closed at the stop-out level

These actions are designed to prevent the account from going into a negative balance.

Leverage Restrictions

Leverage may be restricted or reduced in cases of:

• High market volatility

• Regulatory requirements

• Risk management decisions

• Account compliance reviews

Use of Leverage with Bonuses

When trading with bonus margin:

• Leverage usage may be subject to additional conditions

• Trading behavior may be monitored for bonus abuse or policy violations

Important Notes

• Leverage increases financial risk and may result in losses exceeding deposits.

• Capital Street FX is not responsible for losses caused by insufficient margin monitoring.

• Clients are advised to use leverage cautiously and in accordance with their risk tolerance.