Do Not Lose Your Shirt With a Margin Account
Do Not Lose Your Shirt With a Margin Account Introduction to FOREX margin accounts and how they work. forex, forex trading, forex online, learn forex The key to the FOREX market for the average investor is the margin. Without margin trading currency trading would be beyond most investors. I will explain what the margin is and how it works. When you have a margin account you are able to control large amounts of currency with a relatively small cash deposit. When you have a margin account with a broker you are in effect borrowing money from the broker to control a larger lot of currency. Currency is normally sold in lots with a value of $100,000. A common term used when discussing margin accounts is leverage. Leverage is how much you can control with a certain amount of money. The leverage is usually displayed as a ration such as 1:100. That would allow you to control currency worth 100 times the amount of money you have invested. To better explain this in a FOREX exchange with a 1% marg...