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What is margin trading?

2018/1/2 18:14:48 EMR FX Edit
Margin trading is a form of forex spot trading. Because the transaction is not delivered, you do not need to convert it to any commodity or stock. Because no liquidation or full transaction is due, margin trading allows customers to use a small amount…

Margin trading is a form of forex spot trading. Because the transaction is not delivered, you do not need to convert it to any commodity or stock. Because no liquidation or full transaction is due, margin trading allows customers to use a small amount of money to do a larger number of transactions, and this small amount of money is the margin. As a result of market volatility and the rules of the dealer, the margin may vary for the currency pair you are trading, and if a trader allows high leverage, this may not be in your interest because it can lead to even greater losses when the market is unfavorable to your transaction. If the net value of your trading account is less than 100%, our system will force your position to be flattened out. Although you may not be aware of your account, it is your responsibility to ensure that your account has sufficient margin to maintain your position.

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