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 What is Margin?

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Number of posts : 6
Age : 41
Location : U.S.A
Registration date : 2007-08-11

What is Margin? Empty
PostSubject: What is Margin?   What is Margin? Icon_minitimeSat Aug 11, 2007 1:04 pm

Margin is a performance bond that insures against trading losses. Margin requirements in the FX marketplace allow you to hold positions much larger than the asset value of your account. Trading with Forex Capital Management includes a pre-trade check for margin availability, the trade is executed only if there are sufficient margin funds in your account. The Forex Capital Management trading system calculates cash on hand necessary to cover current positions, and provides this information to you in real time. If funds in your account fall below margin requirements, the system will close all open positions. This prevents your account from falling below your available equity, which is a key protection in this volatile, fast moving marketplace.
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