To better understand the basics of Forex trading and transactions, please view the video provided for you below. VIDEO Forex Transaction Basics (2:07)
Effective Leverage relates to the amount of leverage that your account is using to control the total value of the positions you have open. Here is an example: Assume you have a Standard Lot of USD/CAD (100K on Trading Station…
When trading Forex on margin, there can be a few ways to determine the required margin for a trade. Fixed margin means that there is a fixed amount of margin required to open a trade. If margins were variable and…
To calculate the required margin for your trade, you need to determine a few things: The value of the trade Your account leverage Here is an example: Let's say a trader has a USD account and you want to trade…
Used Margin is the amount of account equity currently committed to maintain open positions. Used Margin can be thought as the trader's 'good faith' deposit on the open positionsThe account must maintain AT LEAST this amount for open trades to…
A Margin Call will occur on a trader's account when: Usable Margin is less than 0 When a trader's Equity is less than Used Margin When positions are over-leveraged or trading losses produce insufficient equity to maintain current open positions, a…
Usable Margin: is the amount of account equity that is currently not being used to maintain open positions. Usable Margin should be thought of as two things: The amount available to open NEW positionsThe amount that EXISTING positions can move against…
Margin is a good faith deposit required to keep a trade open. Leverage is a byproduct of margin and allows an individual to control larger trade sizes. “Leverage” and “margin” refer to the same concept, just from a slightly different…
We recommend having the strongest internet connection possible. At a minimum, a 56K or dial up internet connection is supported but not recommended. Due to inherent volatility in the markets, it is important that traders have a working and reliable…
Take the idea of buying. What if you bought something (it could literally be almost anything...a house, a piece of jewelry or a stock) and it went up in value. If you sold it at that point, you would have…
To see how a trade closed, it is best to run an account statement. Log onto MyFXCM with your account details. Hover your cursor over 'My Info' and select 'Reports.' Run the statement for the date range of the trade in question. …
Traders may employ many strategies when trading with FXCM. Some of these strategies include: Scalping,News trading,EA's (automated Trading)API trading. To learn more, visit the FXCM Apps Store. For more details, visit FXCM's Trading Execution Risks page.