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Thread: The meaning of margin trading system

  1. #1
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    Lightbulb The meaning of margin trading system

    Margin trading system is a way to work enables you to buy and sell goods over the value of your capital several times up to two hundred times. And trading profits and keeping you fully as if you have that product in full

    For example: You can use the introduction of margin to buy gold worth 50 thousand dollars without asking you to pay 50 thousand dollars but will pay 200 dollars for example, will sell gold at 53 thousand dollars and this will bring a profit of 3000 thousands of dollars would keep them fully to you.

    Although you were not possess the value of gold, but were not fully possess only a very, very simple from the value of gold but you managed to buy this gold, sell it and gain full access to you if you paid full value

    In addition, the amount of 200 dollars paid by the first return you also in all cases!

    Having started with 200 dollars may be finished in your pocket 3200 dollars

    This often occurs in a few hours, sometimes a few minutes.

    As you can see you using the method of margin trading capital will be the last one really cares about him where you can buy any commodity it was very simple to pay a portion of their value.

    This is the way of margin trading system, a method that works by millions of traders in the global stock markets, when you hear that someone managed to form a capital of great wealth is very simple and very simple, this period of what may have happened to him and it happens every day all over the world

    But there are a lot of people do not know the mere existence of this method of trading.

  2. #2
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    The definition of margin includes three important concepts: the Margin Loan, the Margin Deposit and the Margin Requirement. The Margin Loan is the amount of money that an investor borrows from his broker to buy securities. The Margin Deposit is the amount of equity contributed by the investor toward the purchase of securities in a margin account. The Margin Requirement is the minimum amount that a customer must deposit and it is commonly expressed as a percent of the current market value. The Margin Deposit can be greater than or equal to the Margin Requirement. We can express this as an equation :
    Margin Loan + Margin Deposit = Market Value of Security
    Margin Deposit >= Margin Requirement

  3. #3
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    said these words "For example: You can use the introduction of margin to buy gold worth 50 thousand dollars without asking you to pay 50 thousand dollars but will pay 200 dollars for example, will sell gold at 53 thousand dollars and this will bring a profit of 3000 thousands of dollars would keep them fully to you.''meaning I do not understand how so
    so sorry if I caused inconvenience
    WaHai BulAn JangaLah AkU :)
    o:)

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    Margin requirements only apply for margin trading. This allows you to hold positions much larger than your actual account value. Margin requirements or advances are not buying. Conversely, the margin is a performance bond, or good faith deposit, to ensure against trading losses. Trading platforms often do pre-check the availability of automated trading and margin trading will run only if you have sufficient margin funds in your account.

  5. #5
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    We usually pay some money just to buy something. In the same way, the forex market is defined to make a process to settle two days in arrear to the trade date. This is so called OTC spot trading. On the other hand, we don't have to pay full amount in the forex margin trading and we are required to pay or receive the translation gains or losses when the position are made square. Here, a problem may happen. If the losses by a certain investor expand further and he got fallen default to pay any more, what is happening? Such trading system would be forced to fail to keep working.

    The margin requirement is defined as the deposit necessary for some collateral in order to solve such kind of problem. The forex margin trading turns out to be very efficient in the fund usage, and the forex margin trading requires one of tenth or one of twentieth as much money as the actual face value you would try to trade, although you might feel strange.

    The name of margin which means "proof" in Japanese, should come from where investors must show money as proof to keep trading in former days. There are various types of the margin, the initial margin, the margin requirement and the maintenance margin. The beginner might feel unfamiliar to those terminologies.

  6. #6
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    We must pay attention on our margin level and free margin when we wanted to trade with lower risk. We must predict the movement of each pair that we have opened and if it's still floating condition. Every trade has their own point of view about how much margin level and margin free which is safe to take some positions again. If me, I will make sure if the margin level won't reach 200% at least, it should be higher, and the margin free is 100 times your lot which you used to trade. That's my opinion :)

  7. #7
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    This is a good strategy but I oppose you in the manner of humanity to buy some thing so cheap and the to sell it with high prices not in proportion with the price you started with.
    sorry if I made annoying to you but this is my attitude toward that article.

  8. #8
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    @menaabdonasry
    this kind of action is buy and sell some of the traders used this kind of attitude that they want to buy the products with a very small amount and sell them to the others with a very high amount of price. by this they would make a high net profit income with their low amount of capital. but it is really better that if we bought it with a very small amount it should be quality and substance so we could also sell it to the appropriate price for equal basis.

  9. #9
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    Trading securities that an investor has bought with money borrowed from a broker for that purpose. An investor who trades on margin can realize huge gains if the price of the security moves in a favorable direction; however, he/she also takes on a great deal of risk because it may not move in such a direction.

  10. #10
    magedelgendy Guest
    margin trading
    The buying and selling of securities in an account in which money is owed to the brokerage firm.
    i think that but not sure i will serach for it

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