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What Is The Margin In Currency Trading?

Posted by iftikhar ahmed
July 16, 2009

Unlike in stock markets, the margin deposit isn’t a down payment on the purchase of equity. Instead, it is a good faith deposit. This margin allows the traders to hold a position much larger than their account value. If the funds in the account happen to fall below the margin requirements, then your broker may close some or all of your open positions. This will prevent your account from falling into a negative balance, even in a fast moving market.

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1 comments:

Shahid Khan Afridi said...
July 25, 2009 at 10:22 AM  

The Margin In Currency Trading is define by global banks is just as a currency .

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