Overseas forex trading is well-known for its generous bonuses. When gathering information about bonuses, you've probably heard the term "bonus cushion function." However, information on this is often difficult to find on forex brokers' official websites, which can be frustrating for many. Therefore, this article will provide a detailed explanation of the bonus cushion function in overseas forex trading. We'll also discuss how it can affect your trading, so please use this as a reference. The latest bonus information for all overseas forex brokers is updated regularly on the Overseas Forex Bonus Comparison Ranking. Contents 1. About the Bonus Cushion Function in Overseas Forex Trading 1.1 What is the Cushion Function? The bonus acts as margin. 1.2 Comparing Bonuses with and without the Cushion Function 1.3 Is there any point in having a bonus without the cushion function? 2 Benefits of using a bonus with a cushion function 2.1 You can increase the number of positions you hold 2.2 Less likely to be stopped out 2.3 You can trade using only the bonus 3 Precautions when using a bonus with a cushion function 3.1 The bonus will disappear if you withdraw or transfer funds 3.2 Most bonuses have an expiration date 3.3 If you incur a loss, your own funds will be deducted first 4 Top 5 recommended overseas FX brokers that offer bonuses with a cushion function 4.1 Vantage Trading 4.2 FXGT 4.3 IS6FX 4.4 HFM 4.5 BigBoss 5 Q&A about bonus cushion functions in overseas FX 5.1 Q. Does AXIORY's bonus have a cushion function? 5.2 Q. Why is there a bonus cushion function? 5.3 Q. How do I use the bonus cushion? 6 Summary About bonus cushion functions in overseas FX The presence or absence of a bonus cushion function in overseas FX is very important. The reason is that the remaining margin amount will be completely different. Since the deposit bonus also serves as a function of margin, you should actively use it. Conversely, without a cushion function, the deposit bonus will not function as margin, so caution is necessary. A cushion function is when the bonus acts as margin. Increasing margin not only allows you to increase the amount of positions you hold or raise leverage, but also has the advantage of making it easier to withstand unrealized losses. With a cushion function, the bonus will not disappear even if your balance falls below 0 yen or you are stopped out. However, with a bonus without a cushion function, the bonus will disappear as soon as your balance falls below 0 yen or you are stopped out. Bonuses without a cushion function are intended to "increase leverage," so they are for advanced traders and are not very user-friendly. The term "cushion function" is a "neologism," so it will not be understood by overseas FX brokers. When checking with customer support about the presence or absence of a cushion function, you will get an appropriate answer by asking a specific question such as, "If my balance falls below 0 yen or I am stopped out, will the bonus disappear?" Comparing the presence or absence of a cushion function We will compare how the presence or absence of a cushion function differs under the condition of 100,000 yen in own funds and 100,000 yen in bonus funds. As mentioned above, with a cushion function, the bonus functions as margin, so even if your own funds reach 0 yen, you can trade using only the bonus to cover losses. In other words, it becomes easier to withstand unrealized losses. Conversely, a bonus without a cushion function (i.e., a bonus that does not function as margin) will disappear when your account balance reaches 0 yen. Is there any point in a bonus without a cushion function? A bonus without a cushion function does not function as margin, so it is meaningless in terms of covering losses. However, with a 100% deposit bonus, the amount you can trade doubles, so you can increase leverage or increase the number of positions you hold. Therefore, thorough money management is important in order to make good use of a bonus without a cushion function. This is because even if you increase your positions using a bonus without a cushion function, you will be stopped out immediately if the market moves against you. For FX beginners with negative annual profit/loss, using a bonus without a cushion function increases the risk of being stopped out, so bonuses without a cushion function are more suitable for advanced traders. Choosing a broker with cashback is also an option If you want to open an account with an overseas FX broker that does not have a cushion function, you can also use a cashback service. Cashback is a system where you receive money to use for trading each time you make a trade. ... Continue reading [Must-see for beginners] What is the cushion function of overseas FX bonuses? A thorough explanation of the difference between having it and not having it!