Saturday, July 2, 2011

Types of FOREX margins provided to investors

 

FOREX type of margin provided to investors is the margin by a percentage (Percentage Based Margin) and the margin with a certain amount of money (Fixed Amount Margin).

Based Margin Percentage
Percentage based margin lending to invertor certain percentage of transaction value. Margins are given in currency into the base currency in the quotation.
Example kalu by guarantee (collateral) of 1%, then to the transaction in USD? USD $ 100,000 (1 lot) enough investors to provide funds of $ 1,000 (1% x $ 100,000).

Fixed Margin Amount
In trading on margin, there is a term called leverage. Leverage is the ratio or the ratio of the amount of funds that can be transacted with its own capital (as collateral or guarantee) owned.

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