Margin requirements and Calculation
Margin is a performance bond, or good faith deposit, to ensure against trading losses and is the deposit required to open or maintain a position. The margin requirement allows you to hold a position much larger than your actual account v...
Example of a Forex Trading and calculation
For example, the current bid-ask price for EUR/USD is 1.5775/1.5781 meaning you can buy 1 Euro for 1.5781 dollars. Suppose you see the trend of Euro growing against dollar and feel Euro is undervalued. To execute this strategy you would ...
How to calculate Profit and Loss? -Forex A to Z-
In contrast to exchange transactions with real supply or real currency the participants of FOREX use trading with a margin deposit; i.e. marginal or leverage trading. In marginal trading, each transaction has two obligatory stages (they ...
Introduction to Forex ④ -Spread-
Spread The term inter-bank prices are often discussed in FX terminology. As implied by the name this refers to the exchange of information or in this case live prices between banks and large institutions, these prices reflect the current...
