Sunday, 5 January 2014

What is a Margin Call?

                                                            What is a Margin Call?
Margin call i.e. a situation in which the open position you are not allowed to be forwarded again due to cash your equity thinned, so that it could lead to a Total Loss and you have to Inject (add capital) before being exposed to this
Do not let your trading Margin Call is reached, therefore pay attention to the durability of your point!!
How to calculate margin call: (IMPORTANT to KNOW!)
THE CALCULATION OF THE MARGIN CALL ARE COMMON:
Example: Suppose your starting capital is $ 1000 and you do SELL order 0.1 lot GBP/USD for example no. 2 above. Then the margin (collateral) used is $ 76. And the remaining balance of your capital (cash equity) after a cut by the guarantee margin will be $ 1000-$ 79 = $ 924.
And because you are using 0.1 lot, the value per pip movement into $ 2, and with the remaining capital of $ 924 of these then you will be able to withstand the loss of up to $ 900/$ 2 = 462 points. So that when the prisoners exceeds your loss (minus 459 points) then the open position you will automatically by the system, due to diclose to avoid cash equity balance you become increasingly negative, and is named after the hit by a Margin Call.
So that means if the margin call cash equity you get down (due to loss) margin under warranted then you will be hit by a margin call, and the open position you will be forcibly diclose and automatically by the system.
You also can't order if your Free Margin is insufficient for the quantity of the lot that you want to order. Therefore adjust the use of lotnya with the power of capital and your margin, and estimate all aspects of a Margin Call.
Ideally bertradinglah with a maximum 20% cash equity you unless your techniques possible for orders in excess of 20% be safely example: capital $ 2000, we recommend that you do not order in excess of 0.2 lot in total (quantity 40000)

Various Command Order (order type)

In Forex Trading, there are several types of orders orders to carry out your transactions, and the order is divided into two types, namely:
Instant Executions Are carried out in order that time also at current prices on the market (Running Prices Quote). And instant executions consisted of command orders Buy and Sell in the market
Pending Orders, I.e. orders will be fulfilled if touch a certain price point (the allusion as first place position membooking)
Pending orders are divided into four types, namely:
BUY STOP: put up (with membooking) BUY It now price is under way, with the hope that when the graph running price moves up to a certain point, and at that point will be automatically mounted a Buy in the hope that the graphic can move up again in order to get the profit
SELL STOP: put up (with membooking) SELL below this price that is now under way, with the hope that when the graph running price moves down to a certain point, and at that point will be automatically mounted to Sell in hopes that the graphic can move down again so that the profit.
BUY LIMIT: put up (with membooking) BUY Below the current price is running, with the hope that when the graph running price moves down to a certain point, and at that point will otomati s mounted a Buy in the hope that after that the graphic can move up to profit.
SELL LIMIT: put up (with membooking) SELL It price is now under way, with the hope that when the graph running price moves up to a certain point, and at that point will be automatically mounted to Sell in the hope that after that the graphic can move down to profit.
Aside commandments order above, in Forex Trading there are also the following terms for the implementation of your order.
Take Profit (TP): i.e. for your target profit Stop Loss (SL): that is to limit your losses (cut loss) SL in General should be installed in every order you, because to limit your losses to weren't worse if you open a position exposed to loss

How to calculate margin (collateral) used to Transact

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