The definition of margin in forex trading is, the value of collateral when the trader will make a transaction. The huge forex margin, depending on the amount of leverage chosen. Large leverage the most often used is 1:100, or 1% of the mean quantity contract size traded. Contonya is as follows. If a player will do forex trading on the quantity of $ 100, then the secured funds is 1% of $ 100, so the forex margin is $ 1. In the modern forex trading, there are all kinds of leverage. Leverage existing between the other 1:1, 1:100, 1:200, up to 1:500.

If at the time trading, forex movements undergo change, in this case are not in accordance with estimates of traders, will appear a margin call. Margin call is re trading capital injections, with the intent to provide for margin trading.

As described above, unlike the modern forex leverage forex leverage traditional. For the traditional forex trading, if the trader intends to make the transaction $ 100,000, then $ 100,000 is also needed capital. Because of the leverage effect is 1:1.

Whereas in the modern forex trading, options leverage and margins vary widely. If a trader chose 1:100 leverage, means to conduct transactions $ 100, then the trader takes a margin of $ 100 x (1 / 100), equal to $ 1. So the forex broker is responsible for issuing the $ 100 capital. You only bear losses or gains from forex transactions you do.

The existence of margins and leverage varies within modern forex trading, making the trader does not need to spend lots of money to be able to make trades. Therefore modern forex trading, in this case online forex trading, become a considerable investment interest. Unlike traditional forex trading earlier.

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