- Trading account protection against margin calls and stop outs during periods when the trader suffers heavy losses (drawdowns).
- Increases leverage.
The total amount of this bonus can be withdrawn once the trader meets the required conditions. To withdraw the bonus, the client must follow the following conditions:
- The trader must trade 1 lot (100 000) on the market for every bonus dollar. This means that if you receive a $100 bonus, you must perform a number of transactions equivalent to 100 lots.
Example of a 100% credit bonus of HotForex
Suppose a customer makes a deposit of $2,000 in the trading account and choose to receive this bonus. Thanks to this, now this account has $2,000 of the original deposit plus $2000 of additional credit as bonus, which means that the trading account now has a total of $4000. Now, this trader opens a buy position in the EUR/USD with a volume of 1 standard lot (100,000 units). The margin required to open a position with this volume is $1000 (margin used with a leverage of 1:100). The market starts moving against the position of the client which in turn begins to lose money as the price begins to fall.
Generally, the level of margin call is 50% of the used margin while the stop out level is 15% of the used margin. However, thanks to the credit bonus, the open position in the EUR/USD will be closed only when capital falls below the bonus level.