Margin trading system
That the system of margin trading is a system that gives you the possibility to trade goods worth more than your capital times.
This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade a commodity as compared to discount a small percentage of its value as a token of the user.
Charkk these companies do not profit or loss where there is only asking you to pay the full value of the item after the sale and implementation of its mandate is limited to buy and sell orders that you set a price that you choose.
If the ordered item to sell at a higher price than the purchase price will be implemented and it deducted the full value of the item will return you to your deposit plus the full profit as if you actually have the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.
Before you do any buying or selling process will open an account with this company and will deposit the amount of money. This amount will continue to be without prejudice to decide to buy a commodity traded by the terms of your account will be divided into two parts:
Sidelines of the user will be deducted according to the equation:
Used Margin = the number of contracts * contract size / percentage multiplier.
The margin available is calculated by the equation:
Margin = Equity - Margin user
And have used margin is the maximum amount that can be lost in the transaction.
Now we return to our previous example:
I've purchased a car from the car agency at $ 10,000 was deducted $ 1000 from your account as margin and the user remains in your account the amount of $ 2000 margin is available.
Now you have a car in your name you can sell in the market .. And keen to make a profit selling them at more than $ 10,000.
Now go to the market and looking for a buyer for the car at a higher price to $ 10,000, is not it ..? Not .. Not the case ..!!
We will assume that the method of buying and selling cars in the country are involved in an auction in which all who wish to sell, purchase, where the price of cars varies depending on supply and demand.
If the number wishing to purchase cars for the number of sellers will increase the price of cars and will continue to rise as long as there are a greater number of buyers.
If the number wishing to sell the car for a number of buyers will drop the price of cars and will continue to decline as long as there are a greater number of vendors. Now you have a car would like to sell ..
Will go to this market and will monitor the price of the car on the market that determines depending on supply and demand in the market, the car is desirable and there are a lot of people willing to buy them will increase the price to $ 10,000 to $ 11,000 for example, and if there is more demand for them may increase the price to $ 12,000.
Here you know that all you have told Auto shot is the amount of $ 10,000, a price that I bought him the car, the car sold at the current market price of $ 12,000 which will be the winner no doubt.
So when the price of the car $ 12,000 in the market to order an agency vehicle to sell the car in your name with this price, we will implement the agency it will sell the car at $ 12,000, will deduct the $ 10,000 full value of the car, which prompts him and will bring you your deposit the opponent, a margin user would add the profit is $ 2,000 to your account to have (12,000 $ - $ 10,000) and your account will now have $ 5,000 ($ 3,000 original account +2000 U.S. dollars profit from the deal).
You can withdraw that amount or withdraw part of it, as you can return the ball again.
In all cases, share a good sleep that night ..!!
In exchange for the discount was $ 1000 from your account on the profit received $ 2,000, an increase of 200% of the capital .. Note that the capital was nothing more than a token was returned after the completion of the deal ..!!
But what if I went to the market and found that the number of vendors than there are buyers? And that there are not many who want to buy your car?
Price of the car will fall to $ 10,000 to $ 9500, for example. This means if you sold the car at the current market, you will lose $ 500.
Where if you had ordered the agency cars to sell the car when he became the price of the market $ 9500 will implement it and you will get $ 9500 and will be deducted from your account to have $ 500 to complete the value of the car in full, and would you deposit you paid a margin user, so your account is to have = $ 2,500 (3000 $ original account - $ 500 loss).
Of course you do not like this .. Believe me, no wonder one ..!!
So wait, hoping to increase demand for your vehicle and return the price to rise. But what if not increased demand but increased supply?!! Price will drop your car more than $ 9500 to $ 9000.
Here if I ordered the agency to sell your car at the current $ 1000 will be your loss St_khasmha Agency to remain in your account and your $ 2000.
Will wait for more ..
But the price is still in decline, for example to 8000 will reach $. What will happen here?
You can wait for more price may go back up. The agency, however, cars will not wait a single moment ..!! It monitors the price of cars in the market and watched you completely ..!!
They will not allow the price to fall more than that ..
Why?
Because the amount you have available margin = $ 2000 which also learned the maximum amount you can afford to lose in this deal.
When the price of cars in the market to $ 8000 if I decided to sell your car at this price the company will be able to complete the rest of the price of the car and the deduction from your existing account to have, they can discount $ 2,000 in margin is available to you.
But if the price of cars less than $ 8,000 means that your loss will be more than $ 2000 then if you decide to sell the car will not enable the Agency to complete the rest of the value of the car of your account and there was no margin is available, only $ 2000 only .. here will bear the agency is part of the loss. This does not allow him .. never!!
Everything that you can lose is the amount in the margin available to you. But what happens when the price of the car market to 8000 $? You will come from the agency the so-called margin call Margin Call.
It is a warning that prompts you when the company either to sell the car immediately or to add more money to the margin you have available. What is this?
We mean that the agency monitors the price of cars cars all the time and with any change in the price of cars in the market assume that you sell the car Stamrha it. And is always eager to bear the entire loss, and you are not. As they do not profit Charkk not Charkk loss.
When the price of the car market in the $ 9000 is not a problem for the Agency cars, because if you ordered it to sell the car at this price you will be able to complete the value of the car at a discount of $ 1,000 available margin that you have.
And when the price of the car market in the $ 8500 is also not a problem where the difference can be deducted from the margin available if ordered to sell the car at this price.
But when the price of the car on the market $ 8,000 if ordered to sell the car the price difference will be deducted from the margin available to you which is all the margin you have available = $ 2000
If the price fell more - even a penny - will not be able to complete the car value of the discount from your account.
If we assume that the price of the car market became = $ 7500 if I sold the car at this price will be your loss = $ 2500
Sale price - purchase price: 7500 $ - $ 10,000 = $ --2,500
Can deduct all the margin you have available is $ 2000 and $ 500 will not be able to be covered from your account and will bear this loss.
So when it becomes:
The current market price - purchase price = Margin
CEATEC margin call
What you have to do then?
You have a choice of two:
Either order the agency to sell the car at this price any sell at $ 8000 and it will implement the Agency's order and deduct the difference from the margin available to you and so will be deducted $ 2000 and had thus completed the Agency the full value of the car ($ 8,000 current market price +2000 U.S. dollars the amount deducted from your account) and so return the earnest money you paid as margin and become a user in your account with $ 1,000 ($ 3,000 original account $ --2,000 amount deducted)
And be your loss in the deal is the $ 2,000 incurred by you in full.
If you do not want to sell at this price and you want to wait any longer may re-price rise, you should add more money to the margin you have available.
If we assume that you add the $ 1000 will be available on the margin Margin = $ 3000
Even if the price of cars dropped to $ 7000 the agency will be able to complete the full value of the car in case of a sale at the current price.
But what if the price of the car market to 8000 $ and I received a margin call the car was Iba did not add more money to my account? What will happen?
The agency will sell the cars at the car in your name $ 8000 will not be waiting for you.
Will be offered so on their own .. You like it or not ..!! Fajova more of the low price the car will sell at $ 8000.
As we have said it will not allow you to lose more than the amount in the margin available to you.
Called the moment the agency to sell the car for fear that the loss is borne by the moment of forced closure Auto Close.
This act just no doubt ..
When the rising prices of cars you will get the full profit for yourself will not only be required to pay the full value of the car .. It's only fair that if the agency does not bear the loss incident for lower prices .. they do not Charkk profit or loss.
If you understand the previous example I understand the principle upon which the margin trading system Trading in Margin Basis.
The system of margin trading is an opportunity for many people to enable them to trade more than the size of their capital several times while retaining the full profit and if they actually have the item and can thus store to get huge profits, a rate can not be obtained any other type of investment.
Many are the people who have to engage effectively in the business world, but their biggest problem they do not have enough capital that they can work. Deluxe marginal trading system really cares about is capital!!
You can understand that trading on a margin like a loan that the institution dealing with it .. which lend the institution item you wish to trade in return for payment for a fraction of its value as a token of a redeemer, to reconsider the value of the item after it sold without you share a profit or loss.
To ensure that does not take this item and run away without the return of remains of this item of the institution are reserved in your name, where you can sell them to order the order the institution to sell at the price you see you are fit, either a profit or loss should not exceed the value of the loss for the amount in your account at the institution and that you will use the institution to cover the loss that occurred to recover the value of the item is complete without shortages and in all circumstances. You will be able to trade different types and sizes of goods may be 200 times more than your capital ..!!
But before moving on to the margin trading system in the global markets .. We will return to some of the concepts so make sure you understand the basis upon which this type of trading.
That the system of margin trading is a system that gives you the possibility to trade goods worth more than your capital times.
This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade a commodity as compared to discount a small percentage of its value as a token of the user.
Charkk these companies do not profit or loss where there is only asking you to pay the full value of the item after the sale and implementation of its mandate is limited to buy and sell orders that you set a price that you choose.
If the ordered item to sell at a higher price than the purchase price will be implemented and it deducted the full value of the item will return you to your deposit plus the full profit as if you actually have the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.
Before you do any buying or selling process will open an account with this company and will deposit the amount of money. This amount will continue to be without prejudice to decide to buy a commodity traded by the terms of your account will be divided into two parts:
Sidelines of the user will be deducted according to the equation:
Used Margin = the number of contracts * contract size / percentage multiplier.
The margin available is calculated by the equation:
Margin = Equity - Margin user
And have used margin is the maximum amount that can be lost in the transaction.
Now we return to our previous example:
I've purchased a car from the car agency at $ 10,000 was deducted $ 1000 from your account as margin and the user remains in your account the amount of $ 2000 margin is available.
Now you have a car in your name you can sell in the market .. And keen to make a profit selling them at more than $ 10,000.
Now go to the market and looking for a buyer for the car at a higher price to $ 10,000, is not it ..? Not .. Not the case ..!!
We will assume that the method of buying and selling cars in the country are involved in an auction in which all who wish to sell, purchase, where the price of cars varies depending on supply and demand.
If the number wishing to purchase cars for the number of sellers will increase the price of cars and will continue to rise as long as there are a greater number of buyers.
If the number wishing to sell the car for a number of buyers will drop the price of cars and will continue to decline as long as there are a greater number of vendors. Now you have a car would like to sell ..
Will go to this market and will monitor the price of the car on the market that determines depending on supply and demand in the market, the car is desirable and there are a lot of people willing to buy them will increase the price to $ 10,000 to $ 11,000 for example, and if there is more demand for them may increase the price to $ 12,000.
Here you know that all you have told Auto shot is the amount of $ 10,000, a price that I bought him the car, the car sold at the current market price of $ 12,000 which will be the winner no doubt.
So when the price of the car $ 12,000 in the market to order an agency vehicle to sell the car in your name with this price, we will implement the agency it will sell the car at $ 12,000, will deduct the $ 10,000 full value of the car, which prompts him and will bring you your deposit the opponent, a margin user would add the profit is $ 2,000 to your account to have (12,000 $ - $ 10,000) and your account will now have $ 5,000 ($ 3,000 original account +2000 U.S. dollars profit from the deal).
You can withdraw that amount or withdraw part of it, as you can return the ball again.
In all cases, share a good sleep that night ..!!
In exchange for the discount was $ 1000 from your account on the profit received $ 2,000, an increase of 200% of the capital .. Note that the capital was nothing more than a token was returned after the completion of the deal ..!!
But what if I went to the market and found that the number of vendors than there are buyers? And that there are not many who want to buy your car?
Price of the car will fall to $ 10,000 to $ 9500, for example. This means if you sold the car at the current market, you will lose $ 500.
Where if you had ordered the agency cars to sell the car when he became the price of the market $ 9500 will implement it and you will get $ 9500 and will be deducted from your account to have $ 500 to complete the value of the car in full, and would you deposit you paid a margin user, so your account is to have = $ 2,500 (3000 $ original account - $ 500 loss).
Of course you do not like this .. Believe me, no wonder one ..!!
So wait, hoping to increase demand for your vehicle and return the price to rise. But what if not increased demand but increased supply?!! Price will drop your car more than $ 9500 to $ 9000.
Here if I ordered the agency to sell your car at the current $ 1000 will be your loss St_khasmha Agency to remain in your account and your $ 2000.
Will wait for more ..
But the price is still in decline, for example to 8000 will reach $. What will happen here?
You can wait for more price may go back up. The agency, however, cars will not wait a single moment ..!! It monitors the price of cars in the market and watched you completely ..!!
They will not allow the price to fall more than that ..
Why?
Because the amount you have available margin = $ 2000 which also learned the maximum amount you can afford to lose in this deal.
When the price of cars in the market to $ 8000 if I decided to sell your car at this price the company will be able to complete the rest of the price of the car and the deduction from your existing account to have, they can discount $ 2,000 in margin is available to you.
But if the price of cars less than $ 8,000 means that your loss will be more than $ 2000 then if you decide to sell the car will not enable the Agency to complete the rest of the value of the car of your account and there was no margin is available, only $ 2000 only .. here will bear the agency is part of the loss. This does not allow him .. never!!
Everything that you can lose is the amount in the margin available to you. But what happens when the price of the car market to 8000 $? You will come from the agency the so-called margin call Margin Call.
It is a warning that prompts you when the company either to sell the car immediately or to add more money to the margin you have available. What is this?
We mean that the agency monitors the price of cars cars all the time and with any change in the price of cars in the market assume that you sell the car Stamrha it. And is always eager to bear the entire loss, and you are not. As they do not profit Charkk not Charkk loss.
When the price of the car market in the $ 9000 is not a problem for the Agency cars, because if you ordered it to sell the car at this price you will be able to complete the value of the car at a discount of $ 1,000 available margin that you have.
And when the price of the car market in the $ 8500 is also not a problem where the difference can be deducted from the margin available if ordered to sell the car at this price.
But when the price of the car on the market $ 8,000 if ordered to sell the car the price difference will be deducted from the margin available to you which is all the margin you have available = $ 2000
If the price fell more - even a penny - will not be able to complete the car value of the discount from your account.
If we assume that the price of the car market became = $ 7500 if I sold the car at this price will be your loss = $ 2500
Sale price - purchase price: 7500 $ - $ 10,000 = $ --2,500
Can deduct all the margin you have available is $ 2000 and $ 500 will not be able to be covered from your account and will bear this loss.
So when it becomes:
The current market price - purchase price = Margin
CEATEC margin call
What you have to do then?
You have a choice of two:
Either order the agency to sell the car at this price any sell at $ 8000 and it will implement the Agency's order and deduct the difference from the margin available to you and so will be deducted $ 2000 and had thus completed the Agency the full value of the car ($ 8,000 current market price +2000 U.S. dollars the amount deducted from your account) and so return the earnest money you paid as margin and become a user in your account with $ 1,000 ($ 3,000 original account $ --2,000 amount deducted)
And be your loss in the deal is the $ 2,000 incurred by you in full.
If you do not want to sell at this price and you want to wait any longer may re-price rise, you should add more money to the margin you have available.
If we assume that you add the $ 1000 will be available on the margin Margin = $ 3000
Even if the price of cars dropped to $ 7000 the agency will be able to complete the full value of the car in case of a sale at the current price.
But what if the price of the car market to 8000 $ and I received a margin call the car was Iba did not add more money to my account? What will happen?
The agency will sell the cars at the car in your name $ 8000 will not be waiting for you.
Will be offered so on their own .. You like it or not ..!! Fajova more of the low price the car will sell at $ 8000.
As we have said it will not allow you to lose more than the amount in the margin available to you.
Called the moment the agency to sell the car for fear that the loss is borne by the moment of forced closure Auto Close.
This act just no doubt ..
When the rising prices of cars you will get the full profit for yourself will not only be required to pay the full value of the car .. It's only fair that if the agency does not bear the loss incident for lower prices .. they do not Charkk profit or loss.
If you understand the previous example I understand the principle upon which the margin trading system Trading in Margin Basis.
The system of margin trading is an opportunity for many people to enable them to trade more than the size of their capital several times while retaining the full profit and if they actually have the item and can thus store to get huge profits, a rate can not be obtained any other type of investment.
Many are the people who have to engage effectively in the business world, but their biggest problem they do not have enough capital that they can work. Deluxe marginal trading system really cares about is capital!!
You can understand that trading on a margin like a loan that the institution dealing with it .. which lend the institution item you wish to trade in return for payment for a fraction of its value as a token of a redeemer, to reconsider the value of the item after it sold without you share a profit or loss.
To ensure that does not take this item and run away without the return of remains of this item of the institution are reserved in your name, where you can sell them to order the order the institution to sell at the price you see you are fit, either a profit or loss should not exceed the value of the loss for the amount in your account at the institution and that you will use the institution to cover the loss that occurred to recover the value of the item is complete without shortages and in all circumstances. You will be able to trade different types and sizes of goods may be 200 times more than your capital ..!!
But before moving on to the margin trading system in the global markets .. We will return to some of the concepts so make sure you understand the basis upon which this type of trading.
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