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What is the cushioning function of foreign exchange bonuses? A detailed explanation of the differences with and without!

Forex is famous for its attractive bonuses.

When researching these bonuses, one often sees the term “bonus cushion feature”.

However, detailed information about this bonus cushion feature is not easy to find on official FX manufacturer websites.

This article will explain in detail what the bonus cushion feature in Forex is.

It will also show you how this feature can affect your trading.

Understanding the Bonus Cushion Feature in Forex

The availability of a bonus cushion feature in foreign exchange is very important.

This is because the amount of remaining margin can vary drastically depending on whether the bonus cushioning feature is available.

The deposit bonus also functions as additional margin, making it a feature that should be utilized proactively.

The deposit bonus is also a feature that serves as a margin, so it should be used actively.

Cushioning function means that the bonus acts as a margin.

The cushioning function is that the bonus acts as a margin.

You can use the bonus to enter a trade and take a larger position.

It is important to note, however, that the bonus is not available at the time of loss.

Example.)  For example, if you deposit $10 into an account with a 100% deposit bonus, you would receive an additional $10, giving you a total of $20 in margin. If you then close an unrealized loss of $5, your balance would be reduced to $5, while the $10 bonus remains, leaving you with $15 in total margin.

However, without the cushioning feature, your balance would still be $5, the bonus would remain $10, but your usable margin would only be $5.

This means that bonuses are not counted as margin during defensive situations, such as when unrealized losses occur.

Conversely, when re-entering a trade, you can take a $15 position whether or not the cushioning feature is applied.

When opening a foreign exchange account, be sure to confirm whether the firm offers a cushioning feature.

However, this is not a term commonly used by Forex firms.

It’s important to note that the term “cushioning feature” is commonly used by affiliates and bloggers, but it is not recognized or applied by Forex firms.

This is because the term “cushion function” is a coined term.

For example, if you ask the customer support of an international Forex broker, “Do you have a cushion feature?”, they may not understand the term.

When posing a question to a customer, Please replace the phrase with “If the balance goes negative or a lost cut is triggered, will the bonus be forfeited?” That way, your inquiry will be understood.

The benefits of bonuses are accessible when the cushioning feature is enabled.

It is recommended for beginners to open an account with a cushioning feature, enabling them to fully benefit from the bonus.

Deposit Balance + Bonus = Total Margin

If your account includes a cushioning feature, the bonus can be used as part of your margin, as explained above, enabling you to trade with the full advantage of the bonus.

The ability to trade with enhanced leverage

Additionally, with the cushioning feature, you can take larger positions as your margin increases by the value of the bonus.

The ability to trade with enhanced leverage is another key advantage.

However, as leverage increases, losses are more likely to grow when the market moves against your position, leading to a higher chance of a lost cut.

With this in mind, be sure to maximize the benefits of the bonuses.

International Forex firms without cushioning functionality are better suited for advanced users.

In conclusion, if you’re a beginner starting with a small investment, it’s advisable to choose an overseas Forex firm that offers a cushioning feature.

Conversely, foreign Forex firms without a cushioning feature are more suitable for advanced users.

This is because the bonus balance cannot be used to cover losses or withstand lost cuts.

Conversely, with a cushioning feature, the bonus balance can be used to cover losses or serve as additional funds to withstand a lost cut (a mechanism that forces a trade to close).

For advanced traders using high leverage, a bonus without a cushioning feature can be useful if they want to fully maximize the bonus amount.

Another option is to choose a broker that offers cashback.

If you prefer to open an account with an overseas Forex firm that doesn’t offer a cushioning feature, there is an option to utilize a cashback service.

Cashback is a system where you receive a rebate for each transaction you make.

  • Between $1 to $8 per trade (per 100,000 units of the base currency).
  • Depending on leverage, there is a cash back of about 5% to 30% of the margin.

Cashback amounts may vary depending on the type of account offered by each broker or platform, but the specific details are provided above.

In other words, even without a cushioning feature, you can still secure favorable trading conditions by utilizing a cashback site.

It may be worth considering the use of a cashback site, such as MoneyCharger, as one of your options.

Be aware that withdrawals may cause the bonus to be lost.

In most cases, bonuses at foreign Forex brokers disappear when cash is withdrawn. Therefore, it’s recommended to withdraw your funds only after fully utilizing the bonus.

Here are three additional points to keep in mind.

  1. Bonuses offered by foreign Forex providers cannot be withdrawn.
  2. The majority of bonuses come with an expiration date.
  3. The bonus may not be eligible for certain conditions.

The first point is that bonuses offered by foreign Forex providers cannot be withdrawn. This is because the bonus is intended solely for trading purposes. Additionally, once the bonus is depleted, it cannot be restored.

The second point is that bonuses almost always come with an expiration date. After receiving a bonus, it’s important to check the expiration date.

Specifically, Find out how many days you must trade within after opening your account, and how many days from the date you receive the bonus before it expires.

The third point is that bonuses may not be available depending on the type of account you have. Foreign Forex providers offer various account types, and some may not qualify for the bonus, so be sure to check eligibility.

To use the deposit bonus effectively…

Deposit bonuses are recommended as a way to support your trading on a real account.If you have only used a demo account, you can take advantage of the bonus and try a real account.

The advantage of a demo account is that it presents a low barrier for beginners, as it does not involve using real money.

However, because the servers and communication environments differ between demo and real accounts, the rates and execution speeds may also vary.

In addition, because demo accounts do not involve real money, it can be challenging to develop practical trading skills.We recommend trying real account trading while making the most of the deposit bonus.

Bonus Cushion Available! 3 Recommended International Forex Accounts to Consider

Here are three recommended foreign FX accounts that offer bonuses with cushion features.

  • XM Trading
  • IS6FX
  • BigBoss

All of these vendors are user-friendly, even for beginners, so be sure to take full advantage of them.

①XM Trading|Popular with beginners

Account Opening Bonus $30-$5,000
Deposit Bonus 10–50%
Deposit Method 11 types
License FCA
Straddling Same account only
Maximum Leverage 1000 times
Spread Dollar-Yen 1.6 pips
Euro dollar 0.66 pips
Scalping Acceptable
Lost Cut 20%
Virtual Currency Trading None
Minimum Trading Unit 10 Currencies
Transaction Fees Free
Trading Tools MT4/MT5
Asset-Backed Guarantee Up to $1 million
Form of Transaction NDD、STP、ECN
Deposit and Withdrawal Fees Free
XM Trading is This international Forex firm offers attractive new account opening bonuses, deposit bonuses of up to $5,000, loyalty programs, and more.

Additional benefits include a refer-a-friend program and exciting limited-time promotions offering great prizes.

The “micro account,” designed for smaller trades, allows trading with a minimum deposit of just $5.

XM Trading is an exceptionally user-friendly international Forex provider, ideal for beginners.

② IS6FX|Advantageous Campaigns

Account Opening Bonus Approximately $20-90
Deposit Bonus 100% deposit bonus (lottery)
Deposit Method 2 types
License FSA
Straddling Acceptable
Maximum Leverage 1000 times
Spread Dollar/Yen: 1.6 pips
Eurodollar: 1.5 pips
Scalping Acceptable
Lost Cut 20%
Virtual Currency Trading None
Minimum Trading Unit 1000 Currencies
Transaction Fees Free
Trading Tools MT4/MT5
Asset-Backed Guarantee None
Form of Transaction DO
Deposit and Withdrawal Fees Free deposits, free withdrawals up to once a month
The IS6FX is These are international Forex firms known for their excellent bonus campaigns.

The company does not currently hold a financial license, likely due to its relatively recent establishment in 2016.

Currently, IS6FX is running promotions, including a 100% deposit bonus during this period.

③BigBoss|Segregated control and trust protection

Account Opening Bonus None
Deposit Bonus Up to $5,000 value
Deposit Method 4 types
License SVG FSA
Straddling Acceptable
Maximum Leverage 999 times
Spread Dollar/Yen: 1.2 pips
Euro dollar: 1.3 pips
Scalping Acceptable
Lost Cut 20%
Virtual Currency Trading Ant
Minimum Trading Unit 1000 Currency
Transaction Fees Free
Trading Tools MT4
Asset-Backed Guarantee None
Form of Transaction NDO
Deposit and Withdrawal Fees Deposit: Free
Withdrawal: $20

BigBoss offers not only bonuses, but also a gacha feature, where you can win up to $5,000.

The company is known for its strong execution power, with orders and settlements being handled promptly.

We regularly offer limited-time promotions, so make sure to check back frequently.

Q&A on Bonus Cushion Feature for Foreign FX

Frequently asked questions about the Forex cushion feature will be addressed in a Q&A format.

  • Q: Does the AXIORY bonus include a cushion feature?
  • Q: What is the purpose of the bonus cushion feature?
  • Q: How can I utilize the bonus cushion?

Please review the items you are interested in.

Does the AXIORY bonus include a cushion feature?

AXIORY is one of the international Forex companies.

The company is known for its transparency, providing not only basic details like commissions and spreads, but also in-depth information on slippage.

Many people may consider opening an account with AXIORY, as it is a highly reliable firm that has received numerous awards.

However, there is no bonus cushion feature, meaning losses from settlements cannot be covered.

If you are considering using AXIORY, it is recommended to utilize the bonus to increase your margin when entering trades.

Q: What is the purpose of the bonus cushion feature?

As previously mentioned, having a bonus cushion feature makes it easier for beginners to trade.

While the bonus with a cushioning feature can be an expense for the provider, Firms that offer generous bonuses and cushioning features often widen their spreads to ensure their own profits.

When choosing a vendor with a cushioning feature, also make sure to consider information about the spread and the vendor’s reputation.

Q: How can I utilize the bonus cushion?

No special settings are required; simply register with an overseas Forex company and open an account to start using the system automatically.

You can easily open an account with just an email address. (However, identification will be required later to withdraw profits from trades.)

The following is a guide to the account opening process, using GEMFOREX as an example.

  1. Navigate to the account opening page, select your account type, and enter your name and email address.
  2. You will then receive a “Registration Completion Notification” email. This email contains your login password for My Page, so be sure to check it and store it securely, such as in a notepad.
  3. You will receive an email confirming that your account opening is complete. This email will include your account number and login password for the trading platform, so be sure to check it and store it securely in a notepad.

By following the steps above, the bonus cushion feature will be automatically enabled.

There is no ON/OFF switch for the cushion feature in the trading screen settings, making it simple and user-friendly, even for beginners.

Summary

This page provides an explanation of the cushion feature in foreign exchange bonuses.

Finally, let’s go over some key points.

  • The cushion feature allows you to not only benefit from the bonus while holding a position but also use it to cover losses.
  • For beginners, it is recommended to choose an international Forex firm that offers a cushion feature.
  • This is because it is more convenient to utilize the bonus when closing out unrealized losses.
  • International Forex firms without cushion functionality are suitable only for advanced users.
  • Without the cushioning feature, the bonus might be larger to compensate.
  • If you prefer to use a Forex firm without a cushion feature, you can still benefit from a cash-back service.
  • Cashback is a system where you receive money back (usable for transactions) for every trade you make.
  • Please note that making withdrawals may result in the bonus being forfeited.

For beginners, it is recommended to open an account with an overseas Forex firm that offers a cushion feature.

This is because the bonus can be used not only to maintain positions but also to cover losses.

This article also introduced international Forex firms with cushioning features.

Feel free to visit the websites of any vendors you’re interested in.

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