Jump to content

Exchange Blog Cryptocurrency Blog


All Pips



What is free margin?


Upoctin

Recommended Posts

Margin and free margin are connected to each other. What will appear at the margin level actually means that your free margin level cannot go below the margin level. If the free margin goes to your margin level then your trade will close automatically. The trade with the highest loss will be closed first and will continue to close continuously unless the free margin level is equalized.

Link to comment
Share on other sites

  • 8 months later...
On 4/21/2021 at 11:43 AM, Upoctin said:

Margin and free margin are connected to each other. What will appear at the margin level actually means that your free margin level cannot go below the margin level. If the free margin goes to your margin level then your trade will close automatically. The trade with the highest loss will be closed first and will continue to close continuously unless the free margin level is equalized.

You are correct. You should also study how leverage applies to this situation. People use high leverage to increase the margin and trade more, but this also reduces your free margin in the sense that you are more likely to hit a margin cut off when you use high leverage. The only broker that I have seen to give you free credit support when you are about to hit a margin cut off is Forexchief. The broker gives free credit to support your trade till you make a deposit, so that you don't lose all your money.

Link to comment
Share on other sites

  • 2 weeks later...
On 1/25/2022 at 8:48 AM, Upoctin said:

Margin is the amount of money that a trader must invest in order to open a trade. To open a position in forex on margin, you only need to pay a percentage of the full position value. This is not a transaction cost.

We will need to know and understand about the use of the Margins in doing our trades into the markets.

Link to comment
Share on other sites

On 1/25/2022 at 8:48 AM, Upoctin said:

Margin is the amount of money that a trader must invest in order to open a trade. To open a position in forex on margin, you only need to pay a percentage of the full position value. This is not a transaction cost.

We will need to know and understand about the use of the Margins in doing our trades into the markets.

Link to comment
Share on other sites

  • 1 month later...
  • 5 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...