Margin trading forex

A margin deposit is not, as many negotiators believe, a cash payment for the purchase of shares mercato.Un margin, in effects, is a guarantee, or some sort of escrow, which guarantees protection against losses during a negotiation. It allows traders to open positions with amounts much higher than the chance of your account and, thus increases their purchasing power. Bank and brokerage firms offer margins of up to 1% (o leverage 1:100), which means that you can check on the real market a deposit of 100 times its own deposit. In this way the effect is that the loss of the gain are multiplied. […]

Quotation system of foreign currencies

Currencies are quoted in pairs, for example - EUR / USD or USD / JPY. The first “acronym”, currency in the pair is called “base currency”, while the second is called “counter currency”. The base currency is the one that will be used as “base” precisely for purchases and sales. For example, if you decide to buy EUR / USD, then you acquire Euros and sell U.S. Dollars. You do this if you expect the Euro to a record high against the U.S. dollar. […]