Best forex brokers | MARGIN IN FOREX TRADING. EVERYTHING YOU NEED TO KNOW
You will get your margin back after complete your trade.
You can say that Margin is a double-edged blade. It can help multiplying your profits several times but that also means you can lose a lot more than expected.
The greater the chances, the greater the risk.
Best forex brokers margin is shown in form of a percentage of the amount of money you decide for a position. You can choose how much margin you want, as long as your broker allows it. 1%, 2%, 20%, 50%, 100%, 500%? It’s up to you.
Depends on how much margin your broker offers, you can calculate the leverage that will be applied to your account.
Each broker will offer different margins. Choose wisely what is most suitable for you.
Used margin: Once you open the position, your deposit will be kept by the broker. This deposit is now called used margin. You will have it back when you complete the trade.
Margin call: This is the scary part. When you’re on the verge to lose a lot of money and the used margin can’t even make up for it, you will get a margin call.
Margin call happens when your account balance is lower than the used margin. When there is a margin call, some of your open positions, sometimes all of them, will be closed at the current market price automatically by your Best forex brokers.
So, you can’t touch your used margin unless you finish a trade (close the position) or your account balance falls lower than the used margin and the margin call takes place.