Top 10 questions
Professional Client status is suitable only for highly experienced traders.
Please note that to qualify for this status, you must pass a knowledge and experience test (fitness test) conducted by the Company.
In addition to the test, at least two conditions from the following list must be met:
(i) You carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters.
(ii) You have a financial instrument portfolio, including cash deposits, exceeding €500,000.
(iii) You have worked at least a year in the financial sector in a professional position that requires knowledge of the relevant transactions or services.
If you would like to read more about Professional Client status, click here.
Please note that you can only open a live account and use it for trading purposes if you are at least 18 years old or of legal age, whichever is greater.
1. To sign up for an account, please fill out the Email and Password fields in the mobile app sign up dialog or via Libertex Web platform at https://app.libertex.com/#modal_register
You can also use your Facebook details to register a trading account.
2. Once you sign up, you'll be asked some questions. Please answer them.
3. After making your first deposit, you'll be prompted to upload your documents for identification purposes. For example: your proof of identity and proof of residence.
4. Upload the documents following the instructions given on the trading platform and wait for the verification process to be completed. Newly registered accounts are typically ready within 3 business days.
As a regulated company we are required to verify your identity, within 15 days.
To verify your account please:
- Send us a double page scan coloured copy of your open passport. In case you do not own a passport, please send us a coloured scanned copy of your National ID card (we require a copy of both sides of the ID card).
- Send us a scanned copy of a utility bill or bank statement issued within the last 6 months. Your full name, address, and the date of issue of the letter must be clearly visible.
The basic trading principle within the Libertex platform is the following: the result of a trade changes in proportion to the price of the underlying asset the trade is based on.
To manage your trading capital, a trader can use the Multiplier Feature set when opening a trade. The Multiplier is a value that determines how the trade result changes relative to the underlying asset price.
To view the maximum possible multiplier value for each trading instrument, please refer to the Specifications.
Please note that, in accordance with the applicable laws and regulations that govern the business of Indication Investments Ltd (the "Company"), the margin close-out rule will apply to a trade if the 50% margin value is equal to or less than the amount of funds involved in a trade.
You open a BRN trade for €1,000 with a multiplier of 10.
50% of this value is €500. This is the value that the Stop Out will be set at. In other words, it will be executed when the position reaches €500.
Note: If the amount of active trade increases, the Stop Out value will be 50% of the new amount.
You open a EUR/USD trade for €1,000. The Stop Loss level is 50%, which is equal to €500. After you increase the amount of the active trade by €500, the total amount is €1,500, and the Stop Loss level is automatically set to €750.
Leverage is the ratio between the volumes being traded, i.e. the total investment amount with the multiplier applied, and the used margin amount.
What is the maximum leverage for each asset class?
a. 30:1 for major currency pairs (3.33% margin)
b. 20:1 for minor currency pairs, gold, and major indices (5% margin)
c. 10:1 for commodities other than gold and minor indices (10% margin)
d. 5:1 for individual equities and other reference values (20% margin)
e. 2:1 for cryptocurrencies (50% margin)
How will this affect my trading account with Libertex?
When you trade any asset, the leverage applied depends on the class such an asset belongs to.
With higher leverage, you need less funds (margin) to open a position, which allows you to open big trades while investing just a fraction.
Conversely, if the leverage is low, you will need more own funds to open your position.
How do I know the total amount of the trades I can open when my account balance is N?
Maximum Amount = Free Margin * Max Leverage for the asset class in question
Let's assume now your account balance is again €10,000, but you want to open multiple trades on EUR/USD.
This is a major currency pair, so the maximum leverage here is 30:1.
Thus, your maximum overall trade amount with multiplier applied is 10,000*30=€300,000.
So, you are free to open any number of EUR/USD trades you want, but their total value, including the multiplier, must not exceed €300,000.
Let's assume your account balance is again €10,000, and you want to open multiple trades on gold.
For minor currency pairs, gold, and major indices the maximum leverage is 20:1.
Thus, your maximum overall trade amount with multiplier applied is 10,000*20=€200,000.
If you want to trade without any restrictions, you can become a Professional Trader. Click here to learn how
To calculate your profit or loss for a Long trade, please use the following formula:
PL = S * M * ( Ec / E0 – 1 ) – C , where:
PL is your profit or loss
S is your investment amount
M is the multiplier value in use
Ec is the close price
Eо is the open price
C is commission charged for your transaction
To calculate your profit or loss for a Short trade, please use the following formula:
PL = S * M * ( 1- Ec / E0) – C
In case your current loss on a transaction reaches 100% (or 80% for stocks) of your investment amount, your transaction is subject to immediate closure. This is to ensure that your maximum risk is limited with your investment amount, i.e. your transaction will not affect your funds that are not invested in it.
Let's assume you have opened a long Dow Jones trade worth EUR 1,000 with multiplier at 10, at 15,345 and closed it at 15,515, your transaction fee being EUR 1.70, and the rollover fee at - EUR 3.80.
Thus, what we get is: 1,000 * 10 * ( 15,515 / 15,345 – 1) – 1.70 – 3.80 = 105.28.
Your transaction profit is EUR 105.28.
Now let's assume we open an identical trade, but a short one:
1,000 * 10 * (1 – 15,515 / 15,345) – 1.70 – 0.20 = -112.68
Here, your loss would be EUR 112.68.
To reset your account password, please go to our web platform or use the menu in Libertex mobile app.
Whichever option you choose, you will need to provide the e-mail address you specified when signing up with us and click Get My New Password.
You will then receive an e-mail with a link to reset your password.
Follow this link to create a new password to access our trading platform.