Financial crane greater the greater the margin available and tell the reserved margin or deposit retriever and thus out of the market rate of increase and the loss of a large portion of your money, because you simply offered a large part of the money now to the market to cover the price reversal.
Well, let's say that your account has a $ 1000
And now you want to trade and the intervention of a deal to transfer, for example, want to buy a pair of holding Micro Eurodollar.
When requested from the company, the company will carry out your order and buy 1000 euros from the base currency for the sale of the corresponding currency pricing or counter currency, in this case the US dollar. The deal are as follows:
- When you open the package, the brokerage company will divide the account into two parts:
1 - the sidelines of the user which in this case (the contract Micro) is roughly equal to $ 13 if the leverage is 1: 100, and if the leverage is 1: 200 will deposit the refund about $ 6 and if the leverage 1: 300 will deposit the refund about $ 4 and if The leverage is 1: 400 will deposit the refund is about $ 3, and so the greater the leverage, the less the margin reserved and thus increases the margin available.
2 - the margin available which is the maximum possible loss in the transaction from your account when the margin available up to the value of the reserved margin will close the deal automatically because the brokerage company will not bear any loss in excess of the value of the margin available.
Well, if you enter a contract Standard or standard in the sense that the point value equal to $ 10. How will the size of the margin available with different levers and what it means?
If your balance is $ 10,000
Contract Size login: 1:00 or standard contract in the sense that the point = $ 10 value.
If the leverage is equal to 1: 100 This means that the size of the reserved margin equal to approximately $ 1,300
If the leverage is equal to 1: 200 This means that the size of the reserved margin is equal to about $ 650
If the leverage is equal to 1: 300 This means that the size of the reserved margin is equal to about $ 430
If the leverage is equal to 1: 400 This means that the size of the reserved margin is equal to about $ 325, and so the greater the leverage, the less the margin reserved and thus increased the available margin than the rest of the amount has displays in your account at risk if reflected arrived in the market you arrived back This simply means that you lose all the margin available. To clarify:
If the leverage is equal to 1: 100 therefore it is reserved margin of about $ 1,300 and we agreed that your account is worth $ 10,000 and that was logged a record contract, it means that the value of the margin available now = 8700 dollars. Well, what if it arrives margin available to the reserved value of $ 1,300 margin? This simply means that you have lost about $ 8,700 from your account and now left in your account, a $ 1,300 value of the recovered deposit, which dates back to you in the case of profit or loss.
Well, if the leverage is 1: 400 This means that the size of the reserved = $ 325 This means that the value of the margin available = 10.000 - Margin 325 = 9675 dollars approx. Well, we repeat the question now is, what if it arrives margin available to the value of the reserved $ 325 margin? This means that you lose about $ 9675 and will return to you now DEPOSIT retriever (the value of the margin reserved). Thus far we conclude that the higher the leverage, the less the margin reserved and therefore can enter the largest contracts to the market, which could bring you fabulous profits or make you lose all your capital in moments, and here lies the seriousness of the high financial leverage if you use most is thoughtful and contracts for large do not commensurate with the strong market movements