When opening a deal, a trader conducts an operation for the amount of the loan issu. The broker requires a margin in accordance with the size of the leverage.
The trader gets the money earn and his margin back, and if he has suffer losses, having lost part of the crit funds, the broker takes the corresponding part of the margin for himself. If the losses exce the amount of the margin, the broker also takes part of the funds from the trader’s account.
Here’s how the volume of funds
Involv in trading visually increases with different leverage:
The amount of funds involv europe cell phone number list in the transaction can be calculat using the formula: “CONTRACT AMOUNT” = “MARGIN” / “LEVERAGE”. Let’s look at the same trading example as before, but using leverage:
The $295.90 earn on the difference in quotes goes to the Forex trader, his $150 deposit is also return to him, and the remaining $14,850 is taken back by the broker. As a result, using the same funds in trading as in the first case, it was possible to earn 100 times more on the same price fluctuation of 2%.
However, if the forecast did not come
True and the market fell by 2%, the losses also increase proportionally to -$295.90.
It is worth noting successful deal that a trader on the Forex market does not bear any responsibility for losses to the broker other than transferring the corresponding amount from his account (usually this is true, but it is necessary to check the terms of work).
The broker increasing the competitiveness of your company is possible has successful deal no right to demand other funds from afb directory the trader for any trading results and, moreover, has no right to declare him his debtor. In addition, brokers closely monitor transactions (programmatically, of course) and close unprofitable transactions if the trader has not done so.
