what is margin trading....Can I trade Big with Less Money in hand?

what is margin trading....Can I trade Big with Less Money in hand?

Margin trading is where the broker lets you trade with a much higher amount than your capital invested. They do this by giving you what is called leverage, often quoted as 50:1, 100:1 even as high as 500:1

 

However trading with high leverage is a double edged sword, you will be trading higher stakes where if you are correct you will have faster gains but when wrong you will get wiped out quicker also.

 

This is why most traders will effectively lower the leverage given to them by trading with only 2-3% of their capital at any one time. You have to preserve your capital, and think trading is a marathon not a sprint.

A margin call is in fact a safeguard to protect a trader from losing 100% or even more of the money in the trading account. To owe additional funds to the broker is actually the worse case scenario. This uncomfortable position is largely avoided because of the existence of the margin call.

Margin trading is where the broker lets you trade with a much higher amount than your capital invested. They do this by giving you what is called leverage, often quoted as 50:1, 100:1 even as high as 500:1

 

However trading with high leverage is a double edged sword, you will be trading higher stakes where if you are correct you will have faster gains but when wrong you will get wiped out quicker also.

 

This is why most traders will effectively lower the leverage given to them by trading with only 2-3% of their capital at any one time. You have to preserve your capital, and think trading is a marathon not a sprint.

 

 

Totally outdated. ;))

Now glory to human excess, you can find better: Leverage up to 1:3000. @-)

This is breathtaking! no?:P

Well it depends underfunded guys who wanna make big buck it can be done with patience and discipline. To run up a small amount to bigger in short time it is also less emotionial the bigger the acount becomes the more difficult it becomes so thats when you start using propper mm. I did it myself many times.

The key is see trading like poker wait for the right hand and then do a bet. In terms of levarage someone is able to take a bigger bet for example on a 200 acount you can trade 1 mini with 500 leverage. It is dangerous but can be done if the 1 is patient will i do same with bigger acount never my emotions change then. But running a 200 acount to 1000 can be done.

If you dont believe me i am willing to teach it but people go harrash me if i sayed it dont do it free but it cost me time because i cant teach somebody something real simple because that it bassically is in 1 day you get even the signal and i take the same trade. i devolped myself propieraty indicators for it bassically i look at 1 pattern and whe trade in the beggining 1 pair risk is real small even with the high leverage the trades are not much because whe wait for the setup. If you intrested pm i dont want to get offended by people i am selling something because i am not i dont even have website or something just saying i am willing to teach some people it but not for free because it takes me time to help someone.

In layman terms, margin trading simply means borrowing money and trading with money you do not have.

 

When you have a margin account, you will be able to get a greater exposure to the market with the same amount of money. The term margin and leverage is used interchangeably.

 

For example, if you have a leverage of 1:100, to take a position with

1 standard lot, you will allocate $1000 from your account to take that position. The broker 'lends' you $99,000 to enter the trade. So your margin amount is $1000 but you have an exposure of $100,000.

 

If you have a leverage of 1:200, to take a position with 1 standard lot, you will allocate $500 from your account to take that position.

The broker 'lends' you $99,500 to enter the trade. So your margin amount is $500 but you have an exposure of $100,000.

 

In both cases, whatever is your trade result be it win or lose, when you close your positions, you get back your margin.

As guys said here, margin trading is the way trader can use broker's money to trade higher. And you have to choose one leverage to trade as 1:100 to 1:3000 (Exness offer).

 

I like your avatar also your post, zamanfx

As guys said here, margin trading is the way trader can use broker's money to trade higher. And you have to choose one leverage to trade as 1:100 to 1:3000 (Exness offer).

 

I like your avatar also your post, zamanfx

 

Just want to correct your post sir, Exness is offer Laverage up to 1:2000 not 1:3000.

 

Be sure to choose the right Laverage that suitable for your trading strategy, for me that use scalping and not have too much funds for trading, I'm better like to choose high Laverage like 1:2000 from Exness but I’m not brave to pick higher laverage value than that, it because more higher laverage value that we choose it means more risk that we take too. So be wise to choose laverage value that will you use.

Thanks aventador :)

I don't want to derail the thread but, wow. 1:2000 leverage is crazy, seriously. Has anyone ever tried using that much leverage? Even 1:100 is too rich for my blood.