What is margin?
Margin is essentially collateral for a position. It allows traders to take on leveraged positions with a fraction of the equity necessary to fund the trade. In the equity markets, the usual margin allowed is 50% which means an investor has double the buying power. In the forex market leverage ranges from 1% to 2%, giving investors the high leverage needed to trade actively. Of course, trading on margin can increase your risk.
Margin is a performance bond, or good faith deposit, to ensure against trading losses. The margin requirement allows you to hold a position much larger than your actual account value. our online trading platform performs an automatic pre-trade check for margin availability, and will only execute the trade if you have sufficient margin funds in your account. The system also calculates the funds needed for current positions and displays this information to you in real time. In the event that funds in your account fall below margin requirements, our Trading Station will close all open positions. This prevents your account from ever falling into a negative equity position even in a highly volatile, fast- moving market.
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 WPP includes a pre-trade check for margin availability; the trade is executed only if there are sufficient margin funds in your account. The WPP 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.
Margin is the amount of money that ForexGen want Forex trader to deposit. Initial margin requirement of ForexGen is 1% for standard accounts. The system automatically check for margin availability, and will execute the transaction only if the trader’s account has enough margin. When a trader’s initial margin value decreases by 50%; Additional margin is required based on the value of open positions. ForexGen reserves the right to liquidate any open positions should the initial margin of trader’s account drop below 50%, this risk management strategy for ForexGen and Forex traders to ensure that traders do not lose more than their accounts’ balances.
