How to calculate the leverage
Although most of the trading platforms based on their own profit and loss account, the user margin and margin, and the total calculation, but knowing the method of calculating these values help to a deeper understanding of currency trading and thus do guarantee transactions and the determination of the profit or loss potential.
Leverage and Margin
Most brokerage firms in the foreign exchange allows a very high rate of leverage ratio (leverage ratio), or in other words, a very low percentage of the margin. That is why in the profits and losses that can be very large in Forex, even though the actual prices of the coins themselves do not change much - certainly not like a stock. In the stock market prices can double or go up three times, or fall to zero; but in the currency market, exchange rates do not change in this way, because the value of the currency does not differ substantially and significantly, and require a margin of less than or less risky than stocks.
Most brokerage firms in the foreign exchange allows a very high rate of leverage ratio (leverage ratio), or in other words, a very low percentage of the margin. That is why in the profits and losses that can be very large in Forex, even though the actual prices of the coins themselves do not change much - certainly not like a stock. In the stock market prices can double or go up three times, or fall to zero; but in the currency market, exchange rates do not change in this way, because the value of the currency does not differ substantially and significantly, and require a margin of less than or less risky than stocks.
Most brokers allow worth lifting 100:1, or 1% margin. This means that you can buy or sell $ 100,000 worth of currency while maintaining the $ 1,000 in your account. In the mini-accounts can reach the value of the crane to 200.
Margin in the foreign exchange market is to ensure the performance, which is the amount of capital needed to ensure cover losses. Thus, you do not buy the currency with borrowed money, and there is no interest in 99% of the currencies that are not covered by the margin.
Margin in the foreign exchange market is to ensure the performance, which is the amount of capital needed to ensure cover losses. Thus, you do not buy the currency with borrowed money, and there is no interest in 99% of the currencies that are not covered by the margin.
As an example, if a trader in the Forex market to purchase a $ 100,000 currency, it does not have a deposit of $ 1,000 and borrows $ 99,000 to buy them. It is a deposit of $ 1,000 to cover the losses of its own, if any. Thus, the purchase or sale of short-currency such as buying or selling short futures instead of stocks.
Margin requirements is not only تتواجه money, but also with an open-profit sites. Liquidity (equity) in your account is the total amount of cash and the amount of unrealized profits in your open trades minus the loss of open positions.
Margin requirements is not only تتواجه money, but also with an open-profit sites. Liquidity (equity) in your account is the total amount of cash and the amount of unrealized profits in your open trades minus the loss of open positions.
Total liquidity = total amount of cash + the amount of unrealized gains on open positions - losses in transactions
Total margin determines the amount of liquidity available to the stores, and if you have open trades, total liquidity continuously vary according to changes in market prices. Thus, it is not wise to stores uses 100% of the margin, otherwise it may be subject to a margin call (margin call) and the deposit is requested additional funds from it. In most cases, it will be the reaction of the brokerage company soon as rolling Dvqat closed most losing even to regain margin.
Total margin determines the amount of liquidity available to the stores, and if you have open trades, total liquidity continuously vary according to changes in market prices. Thus, it is not wise to stores uses 100% of the margin, otherwise it may be subject to a margin call (margin call) and the deposit is requested additional funds from it. In most cases, it will be the reaction of the brokerage company soon as rolling Dvqat closed most losing even to regain margin.
Most brokerage firms in Forex declare openly leverage ratios, and usually 100:1 regular accounts, and can go up to - 200:1 in mini accounts. And the amount of leverage offered by the brokerage firm in the currency market determines the amount of margin that you keep it rolling. Leverage in the Forex market is inversely proportional to the margin, and can be summarized in the following formulas:
Margin Ratio: = 100 \ leverage ratio
Example:
Crane 100:1 ratio back margin rate of 100/100 = 1%. 200:1 ratio back by a margin rate of 100/200 = 0.5%.
Leverage ratio = 1 \ margin = 100 \ margin ratio
To calculate the amount of margin username, doubled the volume of trade at the margin. By subtracting the margin used in all the deliberations of 100 produces holds the rest have a margin.
To calculate the margin in certain trading:
Margin Ratio: = 100 \ leverage ratio
Example:
Crane 100:1 ratio back margin rate of 100/100 = 1%. 200:1 ratio back by a margin rate of 100/200 = 0.5%.
Leverage ratio = 1 \ margin = 100 \ margin ratio
To calculate the amount of margin username, doubled the volume of trade at the margin. By subtracting the margin used in all the deliberations of 100 produces holds the rest have a margin.
To calculate the margin in certain trading:
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