But for many Forex traders, “margin” is a new concept that is often misunderstood and misunderstood.
Like Nima!
Nima certainly knows fried chicken and mashed potatoes, but he certainly does not know anything about margin and leverage.
Margin trading allows you to take positions much larger than your account balance.
Labels: Order to build a Forex robot , Build a stock trading robot , Build a trading robot , Trader robot design , Free Forex Robot , Forex robot programming , Forex Expert Making Tutorial , Build a trading robot with Python , Download Forex Trading Robot , Buy Forex Trader Robot , Automated Forex Robot , Free stock trading robot , Learn how to build a Forex trading robot , Alpari trading robot , Forex robot for Android , MetaTrader robot design , MetaTrader robot programming , Forex robot design , Forex robot programming , Automated trading
With a little cash you can open a much bigger trade in the Forex market.
And then with just a slight change in price in the direction of your trade, it is possible to eventually make big profits.
But for most new traders, this usually does not happen because they do not usually know what they are doing.
Probably, the price moves, but not to their advantage but to their detriment!
Like what happened to Nima.
Nima had opened a deal.
He was sure he would win the deal so he gambled big.
Suddenly, to Nima’s surprise, his trades in the trading software closed automatically, resulting in an epic loss.
The funds that now remain in Nima’s account are not enough to open even another small transaction.
Nima is confused. He asks himself, “What happened ?!”
He contacts his Forex broker but is told that “he has become a margin call and has faced a stop-out.”
Nima does not know what the broker means.
That is why it is essential to have a clear understanding of how margin trading works.
Forex traders need to know the margin
Many novice traders do not understand the concept of margin, how to use it, how to calculate it and its important role in trading.
Do you know what a margin is? What about the margin used?
What is a free margin? What is the margin level? What is Margin Cal? What is Stop Out or Margin Close Out?
As you can see, there are many “marginal terms” used in the Forex world.
Before you choose a forex broker and start trading with your margin, you need to know the meaning of all margin terms.
If you do not know, we can almost guarantee that you will have no end but Nima.
Terrible events such as margin call or stopout will be on your way to your trading account. And you do not even know what happened or even why it happened.
If you really want to know how margins are used in Forex trading, you need to know how your margin trading account really works.
The first step in doing this is to understand the exact meaning of a series of (really important) numbers that you see in your trading software.
We call these numbers the “criteria” for your margin account.
For example, take a look at MetaTrader 4 or MT4 trading software:
What is Forex Margin Trading?
The above numbers are all directly related.
A change in one causes a change in the other.
What is Forex Margin Trading?
As a trader, you need to be fully aware of the relationship between them…
Before you want to open a position in a real account and trade.
Do not be like Nima.
Whenever a set of criteria falls below a certain value, bad things will happen!
So you need to know what these criteria and numbers are and what they are used for ?!
You also need to know what these “bad things” are!
Make sure you have a clear understanding of how the trading account works and how it is used.
So let’s get to the heart of the matter.
Terms used in margin trading
A margin trading account shows the following criteria:
- Balance
- Used Margin
- Free Margin
- Unrealized P / L
- Equity
- Margin Level
Each metric or metric above measures something important in your margin account.
For example, “balance” measures the amount of cash in your account. And if your cash is not a certain amount, you may not have enough “margins” to open new trades or keep existing trades open.
Depending on the trading software, the names of each benchmark may be different, but what is being measured is the same.
Let’s take another look at the MetaTrader 4 criteria.
What is Forex Margin Trading?
“Used margin” does not appear to be displayed. But why is it there. MetaTrader 4 displays it as “Margin”.
Here is another example of account metrics from another trading software:
What is Forex Margin Trading?
Similar metrics or metrics to MetaTrader 4 but different names.
Do not worry about different names, we will explain each margin criterion so that regardless of the name, you will be able to understand which metric refers to what.
We will also teach you what other names each specific measure is known by.
Labels: Order to build a Forex robot , Build a stock trading robot , Build a trading robot , Trader robot design , Free Forex Robot , Forex robot programming , Forex Expert Making Tutorial , Build a trading robot with Python , Download Forex Trading Robot , Buy Forex Trader Robot , Automated Forex Robot , Free stock trading robot , Learn how to build a Forex trading robot , Alpari trading robot , Forex robot for Android , MetaTrader robot design , MetaTrader robot programming , Forex robot design , Forex robot programming , Automated trading
