What is Free Margin? | FXTM Learn Forex in 60 Seconds

jobalertshop March 28, 2024

What is Free Margin? | FXTM Learn Forex in 60 Seconds

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should …

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jobalertshop

8 Comments

@AmBx7965
March 28, 2024 - 10:52 am

hello, what is the difference between trading directly with the amount and with this complicated method (trading on margin)
@benjaminlishika9378
March 28, 2024 - 10:52 am

What is a spread & how is it calculated
@benjaminlishika9378
March 28, 2024 - 10:52 am

What is leverage
@benjaminlishika9378
March 28, 2024 - 10:52 am

What is a lot size
@vicxthevictor5990
March 28, 2024 - 10:52 am

can i ask a question how would you know a margin percentage?
@IamAjijul
March 28, 2024 - 10:52 am

if my currency pair like EURUSD then why you showing balance in USD. EURUSD means my base currency is in EUR.
@arthur72i
March 28, 2024 - 10:52 am

can you please explain why you calculate the loss in that method and how it fit the regular one:

each PIP for LOT worth 10$ in EUR/USD, than for your example it would be:

LOT * 10 * QoutedCurrency = 2*10*$= $20

95 * 20 = $1,900

other way to calculate it:

1) open position: 200,000 EUR * 1.20000 = $240,000

2) closing position: 200,000 EUR * 1.19050 = $239,100

the loss: $240,000 – $239,100 = $1,900 (also)

but in your example you calculate the loss as $2,280,

can you explain please where is my mistake?
@behshadyassini1237
March 28, 2024 - 10:52 am

very usefull. thanks