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Showing posts from February, 2016

What is Equity, Margin, Margin Level, Margin Call ?

Equity : Equity is the loss or profit of your running trade which is presented here. That is, if you close your running trade, what profit hobs can be seen in this equity. What is Margin : Margin is the amount of capital you need to open a trade in Forex. And free margin is the free margin that you get if you subtract the margin from your equity. Margin level : To determine the margin level, divide the equity by the margin and multiply the quotient by 100. Only then will the margin level be available. If the margin level comes to 30-35% then the broker will sell your trade. That is, the broker will not want to lose his loan money. Margin call : Margin call in forex market is if the margin used by you is more than the equity, it is called margin call. That is, when your equity is more than your margin or equity is less than your margin, call it margin.