what is margin & free margin & margin level ?

pls guys it is helpful to know about margin & free margin & margin level for a trader.i especially know many traders which are unknown about this knowledge. so guys pls share your opinions for our new traders and successful trading.

ap ko apnay analysis pr aitmad nahi hay jiss ki wja say ap trade lganay say pahlay yah sochtay hain kay ap ko loss ho jay ga.iss ka solution yah hay kay ap ap apnay kb\nowldge ko complete krain.it is the ambition for earing of a trader that he fears of loss. sometime someone do not have proper knowledge and willl do trade it can also make a fear in him that he will come across loss.

margin is what we demand for broker.. its good if you have start trading with margin about 1000 pips.. example if you have leverage 1:500 then you must invest about 2000$ in standart account to have margin 1000 pips.margin free is an other thing which is different from margin..

Brother. as we are trading with margin means we trade on loan, margin is more like a collateral. For every lot you trade, you have to put a certain amount of collateral attached to it. For example, you trade 1 mini lot GBPUSD (amounting $100), for the sake of discussion, let say your broker set 2% margin for this trade. The total amount of money you traded is "lot value" plus "margin value," which in this case is $120. Let say you have $200 in your account prior to open this position. By the time you open this position, your money balance becomes $200 - $120 = $80. The $80 is your "free margin"; meaning that it doesn't attached to any position yet.

Please note that when price moves against your entry, it isn't your lot value which changes but your margin. That's why the $80 left of your equity balance called that way.

Dear Brother!Forex Business main main new user hun. mujy is ka itna ilm nahi kay is sawal ka jawab de sakun. main abi learning kay stage main hun. Lakin mari kosis hai kay main zeyada time Forex main guzarun.

well dear brother.margin level is the percent amount of the capital that you have in the account that has been used in the trade and the rest is the free and available for the trades that you may wanna make. ;)

that is amount of your available money to trade. for example. if you have $3000 free margin with leverage of 1:100 . if you try to trade with 50 lot. you wont able to. because there is not enough money . in other word. that is your money that free to use for trade. leverage is what decide how much.

dear forex mai jab ap apnii life ko behtar banao gy tu ap ko faida ho ga lehaza ap smjh k aur seekh k kam karo aur apnii life ko set karte jao ta k ap enjoy karo...

you might be looking at this from the wrong direction.

i'm assuming you are using leverage, as most-everyone is. what does this mean? it means you need only a small amount of money in your trading account to open a position that is probably hundreds of times larger than this.

e.g. you have $100 in your account, yet your broker lets you open a position that is the equivalent of moving $10,000. why? because currencies move fractionally, so to realise any real / decent profit or loss means you need to move a large amount of money for the fractional price changes to mean something worthwhile.

to further clarify... imagine if currency a/b was sitting at 1.0000 . imagine you opened a position with one boring old dollar. imagine currency a/b moved to 1.0001. imagine closing your position. without spread, you have made $0.0001. how boring. what about if you had opened a position with $10,000? then you would have made $1. if you had opened a position with $100,000 (which is generally regarded as '1 lot') then you would have made $10 just on that tiny fractional price movement.

most people who are hoping to make money in forex do not have a $10,000 account, let alone a $100,000 account. normally it will be a $100 / $500 / $1,000 account that they will blow and wonder how on earth does anyone make money doing this. keeping this in mind your broker will still allow you to open a position greater than your account due to the previously illustrated small movements of price equating to miniscule changes in account values unless the position traded is significant (1 lot for example). this allows you as a small fish to realize reasonable profits or losses instead of silly amounts like $0.0001. along with this, and more to the point, it allows the brokers to make reasonable profits from their spread-padding baked into the spread you see so that each position you open also gives them a little bit of real money too and not miniscule amounts that would send them bankrupt due to such low cashflow being overwhelmed by normal real-world business costs.

what happens if you have a $100 account, your broker lets you open a $10,000 position, and currency a/b that started at 1.0000 dropped to 0.9900 and you are sitting on a buy position that is losing money? well, your equity would be showing $0 because a $10,000 position would be at a loss of $100 at this price level.

your broker simply does not allow this to happen. they decide that at a certain point if a position has eaten into your equity x% then they pull the plug on the position and you are then left with an account that is significantly battered and bruised (and smaller than before). further to this they certainly won't allow your account to get to a level where it is actually in negative, in which case you would be owing them money.

Free margin or margin show the as per our investment. You are invest the low money and your free margin is low.

trading ke doran free margin ka deyan rakna zaroir ha kuek agra ye kum hona start ho jay tu is ka matlib ha ke is busienss mi loss hona start ho chuka ha and is ke sath he he trader ka whole deposit katry mi per jata ha and fully contl kerna lazmi ho jata ha.

dear forex main margen call is waqt ati hai jis time hamaray pads accounts main passay kam rahy jatay hain or is main hamin warning call ati hai

dear forex trading mai jab trading karte ho to ap ko mt4 mai trade ke neche margin level show hota hai ya aik kisam ki ap ke account balance ki % hoti hai ke itne margin ap ka rehn gaya hai or itne margin ke bad ap ka loss ho sakta hai .......

mojay nahin lagta hain ager ap ki yeah soch hain kay ap kay pas zada say zada investmeant ho gi tabhi ap zada profits attain ker saktay hain sab kuch matter kerta hain ap ki trading pay ager wo achi hain tu 100$ bhi enough to start profits making

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