Margin & Leverage

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What Is the Required Margin?

The Margin Calculator is an essential tool which calculates the margin you must maintain in your account as insurance for opening positions. Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 89% of retail investor accounts lose money when trading CFDs with this provider. You should.

Lately he has lost a lot of trades which worries me. Your advice would be appreciated. What if I start a trade risking the whole account with balance equals equity equals margin right at the very beginning? So no free margin available. This is a suicidal strategy for an idiot: And that is not to mention the false price spikes they cause to liquidate clients, stop hunting, and numerous other methods to steal your money, just like the lying Jews in the Temple, whom Jesus chased into the dirt.

The situation right now, the buying position equal the selling position and my account is on Margin Call. I need your advise what I should do? And how can I keep my account alive? Your prompt advise is appreciated, cause I have one weak to act otherwise my account will be wiped out. You mean you have hedged and you have taken a long and a short position of the same currency pair at the same time?

Not Hedging, what happened the positions I had reached a losses nearly equal my balance, the system made new positions equal the opened ones which makes the Equity and free Margin almost zero instead of closing positions one by one as you said. This is really strange, because how the system can take new positions while your losing position equals your account balance?

There was no free margin in your account for taking any new position. I think you have nothing to lose now if you hold your positions. If you close, you will lose all you have in your balance. However, if you hold, then chances are the price turns around and you get out of this trap.

If the price keeps on going against you, then you will lose no more than your balance which is already lost indeed. Can somebody tell me how to get the margin coverage with the information they give me?

Which of the following is false? If the free margin is , The price is not the good one. All I have to say is thank you. Could you please explain what volume set to 0. Thanks for your wonderful guide.

I feel that I came to correct path after know you in LuckScout. Hopefully to go long journey with your brilliant way. I have question, regarding Margin. Like you said margin is based on leverage calculation. My balance is I am computing it but my computation gives me a margin of I am quite confuse how you do it.

Hope you can help me out with this. To have a 0. Oops my computation is still wrong, but still why is my account not reflecting the true computation. Thank you so much Chris. To have just a 0. Hi Chris, Thanks for wonderful article. I have referred this article to many people who have just stepped in.

Thank you Chris for that you are! My english is very low, so I need to translate all articles with google dictionary and with my knowlagde about english. Thank you for your knowledge and time. I follow LuckScout everyday. Have a nice day Regards BeQuiet from Poland.

Hey Chris, what usualy is bigger in a proffesional trader account, the balance or the equity? And last, how mt4 decide which trade to close in that case, thank you. I learned a lot now. I never imagined a profit which is much bigger more than double from the account balance. They are used to hold their positions for a long time and many of their positions go to profit a lot.

Therefore, the profit is sometimes higher than the balance, but please note that it happens after a long time, not within a week or a few months. Thank you for your lessons. But I confused about one thing.

Let say I decide to open an account and choose to use 1: To make it simple, lets say I deposit and buy 0. Then my account will look like this: Also, my Equity will be equal to my Margin right from the start. And, if the trade is floating minus, isnt it means that I can get stop out? This is really confusing. I hope I dont make you confuse and you get my point.

When you get margin call, you will not be able to take any new positions, but your positions will not be closed. Usually the stop out level is set in the way that your position will not be closed as long as you have money in your account.

This is not true: Please explain this properly to retail speculators who know nothing about how MMs automatically liquidate positions in Metatrader from their initial trade. This is priceless , I did found it very difficult to understand Margin even insta failed to make me understand it.

Is it gonna be gone too or the broker will release it back to my account? Typically, I submit pending orders for two positions with the same lot size. On this occasion, however, I used a market order for my first position but when I went to open my second position, I found that my balance was already fully employed. It was the only position open at the time, so there were no other open positions to take away from my available funds.

Any advice you could give would be greatly appreciated, sir. And I thank you ahead of time for your response. The principal reason you WILL get a margin call is the that the software you are using usually Metatrader is controlled and created by the Kosher Nostra in Russia. Do not feel that this is unfair: Doing this should allow the majority of retail traders to buckle the entire Metatrader mafia and destroy it. Hi Chris, I have been searching for a formula to calculate Free margin that includes hedge trades.

I will surely apply my knowledge from this article while I am trading on my demo account ,and will get back to you if I got any question. With bigger leverage I require less margin and can make more trades. Leverage is not that important. It is only a problem for novice traders who take so many positions.

I know experienced traders will never consider to switch to another trading platform but I recommend it for newcommers. For instance, you can set up a trade to take profits in steps.

Something that you posted somewhere that you do it manually. As we have learnt the minimum size to enter a trade is 10k units. Does it mean that I have to buy 10k units or do I pay with 10k units? I mean like this: Therefore I choose 1: But can someone tell me weather consistently profitable traders use MT, or do I need to look elsewhere? With prices like 1. But they become like 1. The most clear and clean explanation so far concerning the subject matter of.

Hi Chris Thanks for the article. Hopefully you can help me. VERY good simple explanation specially i am no good for calculate i like the way calculate automatically…. Now i can use this website calculator Thank you author …. This eBook shows you the shortest way to acheive Financial Freedom: Just before you go, did you check This System? Make sure to do it now, otherwise you will regret.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage.

You should consider whether you understand how CFDs and Spread Betting work and whether you can afford to take the high risk of losing your money. With regards to the FSB authorisation, FxPro provides execution services and enters into principal to principal transactions with its clients on FxPro's prices; these transactions are not traded on an exchange.

CFDs are a leverage product and can involve a significant risk of loss. Trading CFDs may not be suitable for all, therefore you should ensure that you understand the risks involved and take into account your individual circumstances.

English Change default language Close. Partners Live Chat Contacts. Important Announcements Full calendar. The Risks of Spread Betting with Leverage As a leveraged financial product, Spread Betting can be profitable, however, it also carries a certain level of risk.

What is Spread Betting.