Forex market segmentation contributes about 313 billion in transactions daily, or 8% of the total capital of the foreign exchange market in full. With high financial leverage and margin earned by the retail traders from the trading system used by each retail brokers, market observers showed and dazzle Altkad extent the ability of the forex market to maintain its effectiveness and to ensure that all commercial commitments have been met. Which means that the unpaid losses and profits paid in cash.
And ensures forex brokers legal commitments are met through impose trading. The first is to ensure that all transactions have been covered enough marginal amount of the deposit, which must be at least equal to the marginal deposit amount per share are traded. The slides (quotas) regular amount equal to at least 100,000, this means that the marginal deposit will equal $ 2,000. This translates into a leverage of 50:1, according to the requirements of the American system. The Micro accounts and accounts which contain thumbnail size servings less Fathzy the requirements of the amount of the deposit marginally less leverage but does not exceed 50:1.
And can intermediaries foreigners is affiliated with the laws of the United States Showing leverage largest ranging from 100:1 to 400:1 and the amount of the deposit marginal ranges between $ 1,000 and $ 250., And when you are sure that all trading account containing the amount of the deposit marginal enough, ensures forex brokers that any in trading losses will be paid.
The second is that the law imposes restrictions on forex brokers highest possible losses to be borne by the account for each open position. The highest point allow the accounts to accumulate losses up to the price level where the balance in the marginal amount of the deposit up to 25% of the marginal amount of the deposit required for each share. This point is called a margin call and represent the level of the market where it is the liquidation of open or close a deal automatically because at this point the share of non-capital corrupted equal to 25% of the required margin
Integrates the laws relating to the requirements of leverage and margin above in all the programs offered by each trading Forex broker for his customers. Which means that it will be executed automatically. The deal will not be performed using trading programs unless sufficient amount of the deposit in your account, according to the marginal amount of the deposit required. This also means that all open positions will be closed at a certain point loss any upon arrival at the point margin call
Theoretically, gaining leverage through the use of the borrower's capital is known that retail brokers lend capital to their customers so that they can-sized trading. The truth is that the borrower's capital are just words. The real trading revolves around the amount of margin trading and which are placed by rolling in his account. Whenever a small amount of the deposit whenever they point margin call close. The more points, the closer the appeal closer than rolling out of the deal. And also the more leverage bigger the amount of the deposit required less marginal and the nearest exit point.
These are some of the facts about leverage and margin in the retail trading and that every trader must accept it. And whenever Rolling realized this greater implications, the better for him and his dealings.
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