18 November 2009

Leverage

Leverage - is the ratio between the size of investment and the actual cost. Leverage size in 1:100 means that the trader can buy a Forex contract size of $ 1000, paying $ 10 in the online forex trading currency.

Before you allow to make a new deal, the system checks for the presence of the trader's minimum insurance deposit required to open a new contract. If funds are not sufficient to open a new contract, the platform will not allow any trades, except to close existing ones.

Start new auction is displayed in the column "Used Margin".

Used Margin - deposit, temporarily withdrawn from market participant to cover the losses which the participant may incur as a result of trades. When the bidding stopped, he comes back.

The rest - the reasonable margin.

Available margin limits the size of the positions offered by a trader, and extends to the case, if the trader receives feedback.

When the balance of your account is compared with the stream of used margin because of losses, you get feedback, and brokerage platform will start eliminating all your open positions to make sure that you do not spend more than that invested.

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