{"version":"1.0","provider_name":"For overseas forex cashback services, try Money Charger","provider_url":"https://money-charger.com/en/","author_name":"admin","author_url":"https://money-charger.com/en/author/admin/","title":"[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! - Money Charger, the overseas FX cashback service","type":"rich","width":600,"height":338,"html":"
[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!
\n","description":"Overseas forex trading is 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 the official websites of forex brokers, which can be frustrating for many. This article will explain the bonus cushion function of overseas forex trading in detail. We will 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. About the Bonus Cushion Function in Overseas Forex The presence or absence of a bonus cushion function in overseas forex trading is extremely important. This is because it makes a huge difference in the amount of margin remaining. Since the deposit bonus also functions as margin, you should actively use it. Conversely, if there is no cushion function, the deposit bonus will not serve as margin, so caution is necessary. What is the Cushion Function? The cushion function is when the bonus acts as margin. Increasing your margin not only allows you to increase the amount of positions you hold or raise leverage, but it also has the advantage of making it easier to withstand unrealized losses. With the cushion function, the bonus will not disappear even if your balance falls below 0 yen or you are stopped out. However, bonuses without a cushion function 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,\" making them more suitable for advanced traders and less user-friendly. The term \"cushion function\" is a neologism and will not be understood by overseas forex brokers. When checking with customer support about the presence or absence of a cushion function, you should ask a specific question such as, \"If my balance falls below 0 yen or I am stopped out, will the bonus disappear?\" to get an appropriate answer. Comparing the presence and absence of a cushion function Let's compare how the presence or absence of a cushion function differs under the condition of 100,000 yen in personal funds and 100,000 yen in bonus funds. As mentioned above, with a cushion function, the bonus functions as margin, so even if your personal funds fall to 0 yen, you can trade using only the bonus to cover losses. In other words, it becomes easier to withstand unrealized losses. Conversely, bonuses without a cushion function, which do not function as margin, will disappear as soon as your account balance falls to 0 yen. Is there any point in having a bonus without a cushion function? Bonuses without a cushion function do not function as margin, so they are meaningless in terms of covering losses. However, with a 100% deposit bonus, your trading volume doubles, allowing you to increase leverage or expand your open positions. Therefore, thorough money management is crucial to effectively utilize bonuses without a cushion function. This is because even if you increase your positions using a bonus without a cushion function, you will be immediately stopped out if the market moves against you. For FX beginners with negative annual profits and losses, 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 another 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 that can be used for trading each time you make a trade. The details of cashback vary depending on the broker and the type of account on the site, but they are as described above. In other words, even without a cushion function, you can trade profitably by using a cashback site. Consider using cashback sites such as Money Charger. Advantages of using a bonus with a cushion function Below, we will introduce four advantages of using a bonus with a cushion function. The cushion function allows you to increase your margin by the amount of the bonus, enabling you to hold larger positions when trading. Because you can hold multiple positions, it's easier to aim for larger profits even in short-term trading like scalping. However, while it's easier to aim for larger profits, the risk of being stopped out if the market moves against you also increases. Don't become complacent just because your margin has increased with the bonus; practice proper money management. One of the biggest advantages of the cushion function is that it makes you less likely to be stopped out. Without the cushion function, a stop-loss is executed if you incur losses equal to your deposit (assuming a stop-loss level of 0%). However, with the cushion function, even if you incur losses equal to your deposit, the bonus remains, preventing a stop-loss and allowing you to withstand unrealized losses. However, neglecting money management because you can withstand unrealized losses can lead to your margin suddenly dropping to zero. Even with a bonus, trade with leverage and a number of positions that are appropriate for your margin. A bonus with a cushion function allows you to trade using only the bonus. Because the bonus acts as margin, you can trade using only the bonus even if your own funds reach zero. Furthermore, you can withdraw profits earned using the bonus. A major advantage is that you can aim for high returns with low risk by utilizing a bonus with a cushion function, without needing to prepare a large amount of your own capital. However, the bonus itself cannot be withdrawn, and there are almost always conditions attached to withdrawing profits, so be sure to check the terms and conditions beforehand. Points to note when using a bonus with a cushion function: When using a bonus with a cushion function, please note the following points: Withdrawal/Fund Transfer will cause the bonus to disappear. If you withdraw or transfer funds while a bonus remains in your account, the bonus may disappear. […]"}