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Tindakan Forex

Started by Indonesia, Apr 09, 2020, 09:15 am

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Indonesia

What is a margin call?
We have now explained that margin is the amount of account balance required in order to hold the trade open and we have explained that leverage is the multiple of exposure versus account equity. So let's use an example to explain how margin works and how a margin call might occur.
If a trader has an account with a value of £10,000 in it, but wants to buy 1 lot (a 100,000 contract) of EUR/GBP, they would need to put up £850 of margin in an account leaving £9,150 in usable margin (or free margin), this is based on one euro buying approx. 0.85 of a pound sterling. A broker needs to ensure that the trade or trades the trader is taking in the market place, are covered by the balance in their account. Margin could be regarded as a safety net, for both traders and brokers.
Traders should monitor the level of margin (balance) in their account at all times because they may be in profitable trades, or convinced that the position they are in will become profitable, but find their trade or trades are closed if their margin requirement is breached. If the margin drops below the required levels, FXCC may initiate what is known as a "margin call". In this scenario, FXCC will either advise the trader to deposit additional funds into their Forex account, or close out some (or all) of the positions in order to limit the loss, to both trader and broker.
Creating trading plans, whilst ensuring trader discipline is always maintained, should determine the effective use of leverage and margin. A thorough, detailed, Forex trading strategy, underpinned by a concrete trading plan, is one of the cornerstones of trading success. Combined with prudent use of trading stops and take profit limit orders, added to effective money management should encourage the successful use of leverage and margin, potentially allowing traders to flourish.
In summary, a situation where a margin call might occur is due to use of excessive use of leverage, with inadequate capital, whilst holding on to losing trades for too long, when they should be closed.
Finally, there are other ways to limit margin calls and by far the most effective is to trade by using stops. By using stops on each and every trade, your margin requirement is immediately re-calculated.
At FXCC, depending on the ECN account selected, clients can choose their required leverage, from 1:1 all the way up to 1:300. Clients looking to change their leverage levels can do so by submitting a request through their trader hub area or by email to: [email protected].
Leverage may increase your profits, but as well can magnify your losses. Please ensure that you understand the mechanics of leverage. Seek independent advice if necessary.

Indonesia

High Leverage Forex Brokers.
The Forex trading is known for its leveraged trading possibility , which means that the trader using the leverage strategy or "borrowed" capital as a funding source. This method expands trading base and multiplying the initial account balance timely , which in return leads to potential bigger returns, yet magnifies higher risks of losses as well . The leverage level usually expressed as a ratio, means the trader should have at least a particular percentage of the total available volume (e.g. leverage 1:100 requires 1% of volume).
It is true that the leverage in Forex industry is so popular strategy that even large companies and corporates using tool to generate wealth and mainstay on leveraged offering to traders, as simply this instrument opening opportunities to trade larger volume of currency pairs with an initially small balance .
Meanwhile, the risks of leverage involve high potential to lose funds easier, which caused reputable jurisdictions and their respected authorities like US FMA and CFTC or recent update from European ESMA , take necessary measures and limit offered and allowed levels of leverage . Current maximums on Forex instruments that regulated broker in the US may offer only leverage of 1:50 , while the European broker under ESMA allowed using only 1:30 .
Therefore, due to European and US regulations, restrictions implemented on the leverage caused many traders of smaller size search for alternative opportunities, as the majority of international traders in use to see High Leverage levels alike 1:400, 1:500 or even more.
However, the majority of reputable corporations holding several licenses and run their entities in various jurisdictions while still able to offer higher ratios for leverage by a simple register of account under certain regulation.
For instance, Australian regulation ASIC , which is highly respected for its regulatory guidelines and maintains fair, transparent run of Australian Brokers did not restrict requirement to lower leverage. Thus, Forex Brokers with ASIC License may offer leverage up to 1:400 or even 1:500 .
What we can conclude is that while the majority of companies recently use low leverage ratios , it is solely a choice of a trader under which entity to trade and either use high leverage ratios or not. But from our side, it is important to deliver a message about leverage risks, courage traders to learn how to use leverage smartly in order to perform better trading. And, of course, not to be allured by the highest ratios of leverage alike 1:1000 , it should actually alert any trader, as such levels are extremely risky and are used only by the brokers that are either offshore or nor regulated at all and should be avoided by any cost.

Indonesia

What is Leverage in Forex.
What is Leverage.
Leverage in Forex is the ratio of the trader's funds to the size of the broker's credit. In other words, leverage is a borrowed capital to increase the potential returns. The Forex leverage size usually exceeds the invested capital for several times.
The size of leverage is not fixed at all companies, and it depends on trading conditions provided by a certain Forex broker.
So, Forex Leverage is a way for a trader to trade much bigger volumes than he would, using only his own limited amount of trading capital.
Nowadays, due to margin trading, each individual has access to Foreign Exchange Market which is referred to speculation on the market by credit or leverage, provided by the broker for a certain amount of capital (margin) that is required for maintaining trading positions.
But wait - there's more to know about trading leverage .
How to Choose the Best Leverage Level.
Which is the best leverage level? - The answer to the question is that it is hard to determine which is the right leverage level.
As it mainly depends on the trader's trading strategy and the actual vision of upcoming market moves. That is , scalpers and breakout traders try to use high leverage, as they usually look for quick trades, but as to positional traders, they often trade with low leverage amount.
So, what leverage to use for Forex trading? - just keep in mind that Forex traders should choose the level of leverage that makes them most comfortable.
IFC Markets offers leverage from 1:1 to 1:400. Usually in Forex Market 1:100 leverage level is the most optimal leverage for trading. For example, if $1000 is invested and the leverage is equal to 1:100, the total amount available for trading will equal to $100.000. More precisely saying, due to leverage traders are able to trade higher volumes. Investors having small capitals prefer trading on margin (or with leverage), since their deposit is not enough for opening sufficient trading positions.
As it was mentioned above, the most popular Leverage in Forex is 1:100 .
So what's the problem with high leverage? - Well, the high leverage, besides being attractive is very risky too. Leverage in Forex may cause really big issues to those traders that are newcomers to online trading and just want to use big leverages, expecting to make large profits, while neglecting the fact that the experienced losses are going to be huge as well.
How to Manage Leverage Risk.
So, while leverage can increase the potential profits, it also has the capability to increase potential losses as well, that is why you should choose carefully the amount of leverage on your trading account. But it should be noted that though trading this way require careful risk management, many traders always trade with leverage to increase their potential returns on investment.
It is quite possible to avoid negative effects of Forex leverage on trading results. First of all, it is not rational to trade the whole balance, i.e. to open a position with the maximum trading volume.
Apart from that, Forex brokers usually provide such key risk management tools as stop-loss orders that can help traders to manage risks more effectively.
Here are the basic points to manage the leverage risks properly:
using trailing stops, keeping positions small and limiting the amount of capital for each position.
So, Forex leverage can be used successfully and profitably with proper management.

Indonesia

Keep in mind that the leverage is totally flexible and customizable to each trader's needs and choices.
Now having a better understanding of Forex leverage, find out how trading leverage works with an example.
Forex Leverage Example.
How does Leverage Work Account balance is $1000 with 1:100 leverage. You have dec >
How to Calculate Leverage in Forex.
To measure the leverage for trading - just use the below-mentioned leverage formula.
Leverage = 1/Margin = 100/Margin Percentage.
Example: If the margin is 0.02, then the margin percentage is 2%, and the leverage = 1/0.02 = 100/2 = 50.
To calculate the amount of margin used, just use our Margin Calculator.
You can read more about What is Leverage here.