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In forex what is a margin level? |
in forex what is a margin level? do you want to have a high margin level? or a low margin level? Margin is risk. But even with a margin you can lose all your money. I have a forex account with a margin risk of 10% trading at 400 to 1. I use the www.freedomrocks.com/19768 helps me keep my margin under control and earn excellent interest. margin level is the min $ that the exchange will allow you to use margin to place orders. if you are good use a high degree of margin remember you can loose all your investment fast! so be careful Say you are trading using a trading platform with a leverage of 100:1 and your capital is say 1000$. So if you open a transaction using 500$ then you will have a 100% margin, means 100pips of movement is allowed in the opposite direction before your transaction is closed. Hence your loss is 500$. Unless you put your stop losses. A larger movement will be allowed for indirect counters. |
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