Used and Usable margin

Used and Usable margin

When you open an account with a company that allows margin trading system which will be deposited in advance a fixed amount will remain that amount without prejudice to decide to buy a car, to decide to enter into a deal, then your account will be divided into two parts:

Used Margin used margin: a deposit which will be deducted in advance, which is a refundable deposit will be returned to your account after the sale of the car, whether sold at a profit or a loss.

Margin usable margin: which is the amount left in your account after deducting used margin, and this amount is the maximum amount that allows you to defeat the deal.

How to calculate the margin user?

We do not want to pay much attention to how the user's margin account yourself often will not need to the company where you will advance the amount that will be deducted from your account as a token for every unit of the commodity. In the previous example car agency will tell you it will be deducted the amount of $ 1,000 from your margin account user for every car purchased. If I bought two cars will be deducted from your $ 2,000 margin user and will remain in your $ 1,000 margin available.

Although the company, which will deal with Stgnek need for the user to calculate the margin yourself but it would be very useful to know how to do it yourself.

The user can calculate the margin, which will be deducted as a token of any commodity provider with any company the following equation:

Used margin = full value of the item purchased / multiplier ratio

In the previous example: the value of the car full = $ 10,000 and leverage ratio allowed by the company is 10 times, meaning that the company doubled capital you 10 times, so the margin St_khasmh Agency:

Used margin = full value of the item / multiplier ratio

                  = 10.000 / 10 = $ 1,000

Even thought about buying two cars instead of the car will be used margin which will be deducted from your account:

Used Margin = 20.000 / 1000 = $ 2000

In global markets dealing brokerage firms that allow margin trading system of various types of goods each company a certain quality of goods, are sold every kind on the basis of a fixed unit called the size of the contract is less units are traded item.

In the previous example for cars the size of the contract = one car worth $ 10,000, you can not be traded for less than a car worth $ 10,000 and you can be traded in multiples of this number was trading car or three, etc.

The course allows you to trade a car and a half!!

And the method of calculation used margin:

Used margin = number of contracts * contract size / multiplier ratio

And you will know the size of the contract deal by the company and the proportion of pre-multiplexed before dealing with them, one of the things that may vary from one company to another.

In our previous example:

We know that the size of the contract = one car worth $ 10,000 and that the multiplier ratio = 10

So we know that if we are trading a car the amount St_khasmh agency cars from our account is:

Used margin = number of contracts * contract size / multiplier ratio

                  = 1 * 10.000 / 10 = $ 1,000

But if we want to buy two cars will be:

Used margin = number of contracts * contract size / multiplier ratio

                  = 2 * 10.000 / 10 = $ 2,000

So you can calculate the margin used for any number of cars If we assume that you want to buy 3 cars once will be deducted the amount of $ 3,000 in margin user.

If we assume that you have dealt with the agency cars have the same value of the cars, but give you the proportion doubled equals 20 times means that this agency will allow you to trade Bassarat worth 20 times the amount paid token can be calculated how much is the margin that will be deducted if you want to trade one car:

Used margin = number of contracts * contract size / multiplier ratio

                  = 1 * 10.000 / 20 = $ 500

This means that this agency will be deducted from your account the amount of $ 500 for every car trade.

 How to calculate the margin?

Calculated the following simple equation:

Margin = Equity - Margin user

Only previous example:

You deposit $ 3,000 already in your account that you opened the car agency Frshehadk have = $ 3,000

When I decided to buy a car, the company deduct $ 1,000 in margin user, it will be the margin you have available now:

Margin = Equity - Margin user

               = 3000 - 1000 = $ 2000

Which is the maximum amount you can lose in the deal.

If we assume that you decided to buy two cars, will be deducted $ 2,000 margin user will be the margin you have available now:

Margin = Equity - Margin user

              = 3000 - 2000 = $ 1000

Which is the maximum amount you can lose in the deal.

Until now it has become know the following:

    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.