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Margin leverage (leverage) and closing positions intermediate (margin call)

Margen del apalancamiento, margen, apalancamiento, balance, patrimonio, forex trading, fx trading,





Margen del apalancamiento, margen, apalancamiento,balance, patrimonio, forex trading, fx trading
Is it possible to trade Forex, if you have $ 5,000 for initial capital? Of course, you can trade on margin and this! Margin trading is simply the term used for trading with borrowed capital.

When you borrow the capital? The answer is a broker, using a crowbar!

So you can open the position 10,000 or $ 100,000 with only 100 or $ 1,000. You can make relatively large transactions, quickly and cheaply, with a small amount of seed capital. Attention! Leverage can work against you and destroy ” that set merchant account if you forget the money management!




The amount of leverage you use will depend on your broker and what you like, or from the initial deposit available. Usually, a broker requires a minimum deposit, also known as margin accounts (margin) or initial deposit. Once you have deposited money into your account, you can start trading, a broker will determine the least commercial position (lot).

For example, for every $ 1,000 you have in your account, you can trade 1 lot size of $ 100,000. So if you have $ 5000 that allows you to trade up to $ 500,000 in Forex!

The minimum funds in your account (margin) for each lot will vary from broker to broker. In the example above, the broker needs a limit of 1%. This means that for every $ 100,000 with which trade, the broker wants $ 1,000 as a deposit (security) to the position.

Broker closing positions – margin call.

In the event that money in your account fall below the minimum deposit required – margin, your broker will close a few or all of the free locations (open). This prevents your account from falling into a negative balance, even in a highly volatile currency market rapidly changing.

example:

Let’s say you open an account standard currency with $ 2,000. You open welding position 1 in the EUR / USD, with respect to the margins of $ 1,000. margin can use the money available for new construction with which will suffer a loss of trade. Since paid $ 2,000, your usable margin is $ 2,000. But when a position opens welding 1, which requires a margin of $ 1,000, your usable margin is $ 1,000. If the loss exceeds the usable range $ 1,000 will result in closing position brokerage – and there will be a margin call!

If the capital or the value of your account falls below the margin for the loss, you’ll pay more money, either as a deposit or your broker will close your position to limit your and your risk. As a result, you can never lose more than your deposit!

If you are going to trade your account through margins, it is important to know that the rules set by your broker. You should also know that most brokers require a higher margin during the weekends.

The topic of margin is sensitive and many argue that trading on margin too dangerous. All this, of course, depends on the individual. The important thing to remember is that you need to fully understand the requirements of your broker that relate to trade on margin, you understand and are aware of all the risks and possible losses.

The lever is shown generally in relation, for example, 20: 1, 50: 1, 100: 1 or 200: first

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