Free Forex MQL Training
Free Forex, Candlestick Charts, and MetaTrader Training
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| Margin |
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| Written by Al Parsai | |
| Friday, 20 February 2009 | |
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Margin or Performance Bond is the amount that you need to lock with your broker in order to be able to open a new trade (i.e. order or position). The broker takes this amount from your equity or rather the money that you currently have in your Forex account.
The more the leverage the less margin you need per trade. For example if you want to trade one standard lot of USD/CAD then you need a maximum of 100,000 USD assuming your leverage is 1:1. If the leverage is 100:1 then the necessary margin reduces to 1,000 USD. If your account leverage is 200:1 then the total margin for this trade is 500 USD only.
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| Last Updated ( Saturday, 07 March 2009 ) |
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