General idea of ​​style introduction of margin

What is working on a margin?

To be able to understand the mechanism of the introduction of margin easily we Snscherhaa through imperceptible Serafguena example all the time

Suppose you want to trade in cars and so that you are buying a car then you are selling in the market for a buyer at a higher price, how do you do it?

Will go to one of the big car agencies will choose a car that you think you will find an application in the market to assume that the price of the car with the car agency is $ 10,000

All you have to do is to provide this amount and pay for car agency and thus the owner of a car worth $ 10,000 .. Since the purpose of buying a car is traded, you will go to the market and offer your car, hoping that it sells at a higher price than the price at which you bought it.

Now suppose that when you went to the market and found that the demand for high quality car and there are a lot of people would like to buy .. then will display your car at $ 12,000, for example ..

If I sold this price is net profit from trading this vehicle $ 2,000

But what if I went to the market and found that the demand for the quality of your car is weak and he does not have a wish to purchase price of $ 10,000 and the maximum price one can buy a car is $ 8,000?

What does that mean?

Simply means that you if you sell at this price, lost in trading this car will be $ 2,000

It's a clear process is much work every day .. and you can do so you also.

But hey!!

Previous order for the process, you have to be the property of the amount of $ 10,000 from the beginning to be able to buy buy the car .. and this is your capital in trading.

If you do not have this amount will not be able to buy the car and thus will not be able to sell them in the market ..

Meaning that in order to be able to trade cars must be property for the entire value of the car I. ..

Is there a way because you this process without that you have $ 10,000?

Yes there is a way .. A working method Margin Trading in margin basis

How so?

Why Oukal you agency owner cars: "If you wish to buy a car for trading them there is no need to pay me $ 10000 full value all that is required of you is to pay me a token provider worth only $ 1000 and I'm going to book the car in your name so that you the opportunity to sell in the market Then bring me the rest of its value "

It is a wonderful opportunity, no doubt ..

Notice we said here "reserve" car in your name .. Any agency that cars will not actually give you the car, but booked in your name and will make them at your disposal for the purpose of trading so that you can sell at the price you want and if you actually owned.

But why to Atatini car?

Because you not only pay only ten worth .. gave you the car has taken and get used!!

Therefore to Atattiyk car but detain your name, but the remainder of their ..

So how do I trade it?

Well, when you know that you have a car reserved in your name for trading and that you can sell at the price you want, you can now go to the market and search for a buyer at a higher price than the purchase price of the car.

To transport you in the market found buyers for the car at $ 12,000 then order an agency car buyer to sell the car reserved in your name at $ 12,000.

Buyer will pay $ 12,000 and pick the car ..

Car agency will deduct the value of the car is $ 10,000 and will respond to you the Arbounk paid a $ 1,000 plus the full profit a $ 2,000

As you originally اتنوي only trading drive you differentiate it will not get on the car actually or remain with the car agency ..

It is important that you have had the opportunity to trade a commodity worth ten times the amount you paid and got the full profit and if you actually own item.

And in this way to ensure car agency access to the full value of the car and you should also get a full profit.

And this all will be happy!!

In the previous example once your payment for the amount of $ 1,000 managed to get a profit of $ 2,000 200% of your paid-up capital just because you found a company allows you to pay a fraction of the value of the item you wish to trade.

It's a great opportunity right?

 But how did this happen?

This happened because the owner of the car agency gave you the opportunity to double leverage your capital paid a $ 1,000 to ten-fold to $ 10,000 and thus allowing you the opportunity to trade a commodity worth ten times bigger actual paid-up value of your capital.

This so-called double or capital Leverage Leverage.

When you get the possibility of doubling your capital ten times that mean you for your payment - your investment - the amount of what it you have the opportunity to trade a commodity worth more than ten times the value of your capital.

And when you get the possibility of doubling your capital to one hundred times the meaning of you for your payment of the amount of what it you will have the opportunity to trade a commodity worth more than one hundred times the value of your capital.

And you'll get the full profit and if you have an actual item.

Ie if we apply it to the previous example it for payment of the amount of $ 10,000 you will have the opportunity to trade cars worth $ 100,000 a dozen cars one time .. If you win on each car the amount of $ 2,000 means that the profit on the whole deal (2000 * 10 = $ 20,000) will get them in full and all that profit return on investment for the amount of $ 10,000 as a token of redeemer will return you in the end!!

Does this make sense?

Yes reasonable .. Which is what happens hundreds of millions per day in the financial markets and margin trading system.

Did you know now how to make millions?!

 To go back again to our previous example:

Initially mentioned regular trading method and has the following form:

You make a purchase through your payment for the entire value of the car.

You go to the market and offer an item for sale.

You sell.

If you sell your car at a higher price than the purchase price be a winner, but I sold it at a lower price than the purchase price be a loser.

But when you margin trading in a way, this is what happened:

 You buy from the auto dealership to double your capital ten times so that you pay the amount of $ 1,000 as a token of refundable and you temporarily so the owner of the car until it is sold and re-valued.

  When you pay $ 1,000 agency gave you the possibility of trading drive cars worth $ 10,000, any trading It Mkntek of ten times your capital.

I went to the market and offered an item owned by temporarily for sale.

You sell so that the agency ordered cars to sell the car owned by temporarily - and they already have in your name - to a buyer who found him in the market at a price that you specify.

The car agency implementing it and sold the car to the buyer, and then deducting the original value - that Batk car - any $ 10,000 and Slmtk rest as profit net you and you re-deposit you paid in the beginning.

Note here ..

That when the agency cars to double your capital ten times, they did so to allow you the opportunity to trade worth car (items) worth more than 10 times the value of what I paid for that you pay the rest of the value of the car after you sell, any when you paid $ 1000 and became an owner temporarily for the car you become indebted to the Agency cars in the amount of $ 10,000 to pay the full value of the car, where the amount of $ 1,000, which paid are just a refundable deposit upon payment.

If you order an agency that sells cars car priced at $ 12,000, will be implementing it will deduct $ 10,000 value of the car and would you first deposit you paid plus $ 2,000 is profit in trading.

But what if you sold the car at a lower price than the purchase price?

What if I sold the amount of $ 8,000, for example?

Will be required to complete the value of your car out of your pocket, which will be required to pay the amount of $ 2,000 until the value of the car is finished then recovered Arbounk that paid in advance.

Just as the automobile agency not profit Charkk they not Charkk loss also.

Whether you win or lose is not asking you only pay the full value of the car after sale, if ordered to sell the car at a higher price than the purchase price it will be implemented and will be deducted the value of the car then you are Arbounk plus full profit.

If ordered to sell the car for less than the purchase price, it will be implemented also and Stelzmk to pay from your own pocket completes the full value of the car, and this amount is lost in this deal.

In the previous example, when I sold the car at $ 8000 $ it you need to add from your pocket amount of $ 2,000 to become the amount of $ 10,000 for payment and you told the car and you bear the loss and not a car agency, and in all cases recovered Arbounk the prepaid.

But why not delude car agency?!

Well: When we started our dealings with the Agency for cars that allow us to double the capital ten times what we paid is $ 1000, and when ordered agency cars to sell the car at $ 12,000 - after that we found her on the buyer at this price - the Agency to sell the car at a price that we set and returned to us the deposit plus the full profit.

If: If ordered the agency to sell the car at $ 8,000 will not add to our pocket something just for the auto agency is $ 1,000, so we're going to make car agency is borne by the loss ..

So you will not pay anything ... We'll run away!!

So do not actually happen, the agency dealing with cars in a way that the margin has a special system that we can geomatics in one sentence:

Must be deposited maximum amount that can be lost in the deal in advance with the car agency.

How so?

So you have the opportunity to margin trading system, which allows you to work most of your size ten times the car agency will require the following:

To open an account with the amount deposited $ 3,000, for example.

This amount will be deposited in advance with the car agency.

Car agency will return to double your capital ten times leverage, and will allow you to trade a commodity exchange to pay only ten value only token-refundable.

You will buy a car, and since it does not only need to pay ten value, as valued at $ 10,000 it does not you will only need to pay $ 1,000 as a token redeemer.

When you buy the car deposit will be deducted from your account will deduct $ 1,000 this Snsmi "used margin used margin".

Will remain in your account now $ 2,000 unused Sensmiha "Margin usable margin". Will this amount is the maximum amount you can afford to lose the deal.

The agency thus ensuring cars that you are who will bear the loss that occurred and are not, and will not be afraid to run away because there have in your account the amount you can afford to lose.

When ordering auto agency to sell the car in the amount of $ 12,000 will be implemented agency it would sell the car and deducted $ 10,000 value of the car and would Arbounk plus full profit and will it add to your account has thus become your account has = $ 5,000.

But if ordered agency cars to sell the car at a lower price than the purchase price for the transfer of $ 8000 will and agency auto implement it and sell the car and then deducted $ 2000 from your have to complete the rest of the price of the car, then would you Arbounk to your account and become your have only $ 1000.

Do you know why this is called the method in action "margin trading system"?

This is because it is dealing and trading on margin of profit and loss in trading commodity without having to pay full value, where the added profit from the transaction account stores, discount margin loss account stores.

What do you understand as well?

Understand that you can not in any deal to lose more than the amount in the account with the company that allows you to margin trading system.

To illustrate the most important point .. Follow us on the following topics.