Margin trading system

Margin trading system

That the margin trading system is a system that gives you the possibility to trade goods worth more than times your capital.

This type of trading deal with private companies are doubling your capital several times as it allows you to trade a commodity exchange for a small percentage of the discount value as a token of the user.

Not Charkk these companies profit or loss where not asking you only to pay the full value of the item sold and limited mission to the implementation of buy and sell orders that you set a price that you choose.

 If ordered it to sell the item at a higher price than the purchase price it will be implemented and will be deducted the full value of the item and would you Arbounk plus full profit and like you own the actual item. The Item ordered it to sell at a lower price than the purchase price it will be implemented and will be deducted from your account has completed the full value of the item.

Before you do any process of buying or selling will open an account with this company and deposited the sum of money.

This amount will continue to be without prejudice to decide to buy a commodity to trade with your account will be divided into two parts:

Sidelines of the user to be deducted by the equation: Used margin = number of contracts * contract size / multiplier ratio.

The margin available is calculated according to the equation: Margin = Equity - Margin user

Be used margin is the maximum amount that can be lost in the transaction.

  Now to get back to our previous example:

I've bought a car from a car agency at $ 10,000 was deducted $ 1,000 from your margin account user and remain in your account the amount of $ 2,000 in margin available.

Now you have a car in your name you can sell in the market .. To achieve profit keen to sell at more than $ 10,000.

Would now go to the market and looking for a buyer of the car at a higher price of $ 10,000 .. is not it?

No .. Not so!!

We will assume that the method of buying and selling cars in the country are auctioned shared by all who wish to buy and sell and where the price of cars changes depending on supply and demand.

If the number who wish to purchase cars on the number of vendors will increase the price of cars and will continue to rise as long as there is a greater number of buyers.

If the number wishing to sell cars on the number of buyers will drop the price of cars and will continue to decline as long as there is a larger number of vendors.

Now you have a car would like to sell ..

Go to this market and will monitor the price of the vehicle on the market that determines by supply and demand in the market, your car is desirable and there are plenty of people willing to buy them will increase the price tag of $ 10,000 to $ 11,000, for example, and if there is more demand could rise priced to $ 12,000.

Here, you know that all you have shot told car is the amount of $ 10,000, a price that I bought the car, the car sold at the current market price of any price of $ 12,000 will be a winner no doubt.

So when it becomes car price $ 12,000 in the market to order agency cars to sell the car that your name has at this price, we will implement the IAEA it will sell the car at $ 12,000, will deduct $ 10,000 full value of the car, which prompts him and would you Arbounk which opponent margin user will add profit is $ 2,000 to your account has (12,000 $ - $ 10,000) and will account has now $ 5,000 ($ 3,000 original account + $ 2,000 profit from the deal).

You can withdraw this amount or withdraw part of it, as you can return the ball again.

In all cases, will sleep soundly tonight ..!!

In return for that was deducted $ 1,000 from your account got profit of $ 2000, an increase of 200% of the capital .. Note that the capital was nothing more than a token returned after completion of the transaction ..!!

But what if I went to the market and found that the number of vendors more than the number of buyers? And that there are not a lot of wanting to buy your car?

Will drop the price of the car from $ 10,000 to $ 9500, for example.

This means that if you sold the car at the current market price, you lose $ 500.

Where if you had ordered the agency cars to sell the car when it became priced market $ 9500 will implement it and you will get $ 9500 and will be deducted from your account has $ 500 to complete the value of the car is complete, would you deposit you paid margin user and thus your have = $ 2,500 (3000 $ original account - $ 500 loss).

Of course, this does not like ..

No one dislikes Believe me ..!!

So wait, hoping that the increasing demand for the car and return to the high price.

But what if not increased demand but increased supply?!!

Car price will fall more than 9500 $ to 9000 $.

Here if ordered the agency to sell your car at the current price would be lost $ 1,000 St_khasmha Agency of your account and remain in your $ 2,000.

Wait more ..

But the price is still in decline will, for example, to $ 8,000.

What will happen here?

You can not wait more perhaps due to the high price.

The agency, however, cars will not wait a single moment ..!!

It monitors the price of cars in the market also watched you ..!!

They will not allow the price to fall by more than that ..

Why?

Because the amount that you have margin available = $ 2,000 which, as I learned the maximum amount you can afford to lose in this deal.

When the price of cars in the market to $ 8,000 if you decide to sell your car at this price the company will be able to complete the rest of the price of the car and deducted from your existing account have, they can deduct $ 2,000 in margin available to you.

But if the price of cars less than $ 8000 means that your loss will be more than $ 2000 then if you decide to sell the car will not be able Agency to complete the rest of the car value of your account and when there was no margin available only $ 2000 only .. here will bear the agency is part of the loss.

This is not allowed by never!!

All you can lose is the amount in the margin you have available.

But what will happen when it reaches the market price of the car to $ 8000?

You will come from the agency what is called a margin call Margin Call.

A warning asking you where the company either to sell the car immediately or add more money to your available margin.

What does this mean?

We mean that the car agency monitors the price of cars all the time and with no change in the price of cars in the market assume that you Stamrha sell the car.

And is always keen to assume you are a complete loss and is not.

As they not profit Charkk not loss Charkk.

When the price of the car market in 9000 $ not a problem for cars Agency, because if you ordered it to sell the car at this price you will be able to update the value of the car deduct $ 1,000 of margin that you have.

And when the price of the car market in 8500 $ also not a problem where they can deduct the difference from the margin available if ordered to sell the car at this price.

But when the price of the car market in 8000 $ Had ordered it to sell the car price difference deducted from your available margin which is all available margin that you have = $ 2,000

If the price fell more - even a penny - will not be able to complete the value of discount car of your account.

If we assume that the price of the car market has become = $ 7,500 If you sell the car at this price will be lost = $ 2,500

Price - price

$ 7,500 - $ 10,000 = - 2500 $

Can deduct all the available margin that you have a $ 2000 and will remain $ 500 will not be able to be covered from your account and will bear this loss.

So when it becomes: the current market price - purchase price = margin .. CEATEC Margin Call

So what you have to do then?

You a choice of two:

Either to order the agency to sell the car at this price any sell at $ 8000 and thus will be implemented agency it and deduct the difference from the margin you have available and thus deducted $ 2000 and had thus completed the IAEA full value of the car ($ 8,000 current market price +2000 U.S. dollars the amount deducted from your account) and so return you to deposit margin paid user becomes $ 1,000 in your account has (3000 $ original account - $ 2,000 amount deducted)

And be lost in the transaction is $ 2,000 incurred by you in full.

And if you do not want to sell at this price and want to wait any longer Perhaps the price comes back height you need to add more money to your available margin.

If we assume that you add $ 1,000 to the margin will become available margin = $ 3,000

Even if the price fell to $ 7,000 cars Agency will be able to complete the full value of the car in case of a sale at the current price.

But what if the price of the car in the market to $ 8000 and I received a margin call that was Iba car did not add more money to my account? What will happen?

Agency will sell cars the car in your name at $ 8,000 and you will not be waiting for something.

Will be covered so itself .. You want or could not answer!!

Fajova low price more will sell the car at $ 8,000.

They are, as we said will not allow you to lose more than the amount in the margin you have available.

The moment you called the agency to sell the car for fear that the bear is forced closure loss Auto Close.

This is a just act no doubt ..

When car prices rise you will receive the full profit for yourself will not be required to only pay the full value of the car .. It is only fair, then, that the Agency does not bear the loss incident for lower prices .. They not profit Charkk or loss.

The margin trading system is an opportunity for many people to enable them to trade size exceeds their capital several times while retaining full profit and if they actually have the item and can therefore stores to obtain huge profits and rate can not be obtained by any other type of investment.

Many are the people who have the effectiveness of the fight in the business world, but their major problem they do not have enough capital from which they can work.

Marginal trading system last thing you care is the capital!!

You can understand trading system marginal like loan temporarily from the institution you are dealing with .. where lend Foundation Item you want traded versus payment for a fraction of its value as a token redeemer, to reconsider the value of this item after it sells without shares a profit or loss.

To ensure that does not take this item and escape without return remains this item institution has reserved in your name, where you can sell to order order company that sells at a price that you see you fit, whether profit or loss should not exceed the value of the loss for the amount in the account of the institution and that the company will use to cover the loss that got to recover the full value of the item without deficiency and in all circumstances.

You will be able to trade different types of goods and sizes may exceed your capital 200 times ..!!

But before moving on to the margin trading system in the global market .. We'll take more examples so make sure you understand the basis upon which this type of trading that you can not think about it before work to understand fully.