The definition of a margin
Is a global trading system, allows you to trade at double the head of the owner, without the need to possess the full amount of trader.
Where your account is secure trading Recovered (token) to the broker or bank, the deal covers the loss if any, who shall liquidate the bank the same deal.
The profit in the event of being profitable full of shops, and not the bank or broker commission only deal
This is called a type of trading, trade margin (Margin Trading)
And there is no sentence in any event, any indebtedness located on the customer as a result of this trade, and full of risk and profit fall to the shops.
The following definition of terms used in this system.
(1) margin (Margin)
A deposit which will be deducted in advance, a refundable deposit will be returned to your account following the liquidation of the transaction, whether profit or loss.
(2) margin available (Free Margin)
Which is the amount remaining in your account after deduction of margin used, and this amount is the maximum amount that allows you to losing the deal.
(3) leverage (Leverage):
Is the ratio between the actual value of the contract that you want to be traded and the value of the deposit which asks you to pay (used margin) to allow you to trade in this contract.
It is usually Maicon (100:1) or (200:1), ie, we divide the full contract (100 k) (100) or (200) to know the value of the margin reserved for the contract.
In the case of (100:1) divide the contract value (100.000) at (100) to arrive at is ($ 1000) that is reserved for the margin per contract is ($ 1000)
In case (200:1) divide the value of the contract (100.000) at (200) to arrive at is ($ 500) that is reserved for the margin per contract is ($ 500)
And not the proportion of leverage has no effect on the point value
Not share the mediator in profit or loss, where does not prompt you only pay the full value of the contract after closing the deal, and whose sole task in the implementation of buy and sell orders that you set a price that you choose.
And be available margin is the maximum amount that can be lost in the transaction.
If you close the deal, winning the mediator retrieves the value of the transaction (paid by you) and add the full profit and whatever to your account
If you close the deal, losing the mediator retrieves the value of the deal (which is less than you paid) and meet the difference from your account.
If the deal is busted open, the value loss to open the margin close to the values available, the intermediary alert, this alert is called margin call (Margin Call), the spectrum to act so as not to come to the full amount of loss insurance, and thus the agent automatically forced closure ( Auto Close), so as not to lose the mediator of the up, or they might not prompt you.
The risk of a margin:
Given the significant risk arising from the use of a margin, then to the shops to warn of excessive use of many decades - even if available as the system - so as not to have quick access to (margin call).
The market is always moving and where many of the opportunities, do not let one chance - may injure or wrong - is the borderline between profit and loss.
Been completed and praise to God from the definition of the currency market InshaAllah, the concept and easy to present any question I
Good luck to all