Margin trading system

That the system of margin trading is a system that provides you the possibility to trade goods worth more than your capital times.This is the kind of trade deal with private companies are doubling your capital several times as it allows you to trade as a commodity for a small percentage discount of its value as a token of the user.These companies do not share your profit or loss where there is only asking you to pay the full value of the item after sale, and its mission is limited to the implementation of the buy and sell orders that you set a price that you choose.
 If ordered sale of the product at a higher price than the purchase price will be implemented and it deducted the full value of the item you would Arbounk plus full profit as if you actually own the item. The ordered sale of the product at a lower price than the purchase price will be implemented and it will be deducted from your account to have completed the full value of the item.Before you do any buying or selling process will open an account with this company and will deposit an amount of money.This amount will be without prejudice to decide to buy a commodity traded by which your account will be divided into two parts:Sidelines of the user will be deducted according to the equation:
 Used margin = number of contracts * contract size / percentage multiplier.The margin available is calculated by the equation:
 Margin = Balance - Margin userThe margin used is the maximum amount that can be lost in the transaction.
  Now we return to our previous example:I've purchased a car from an agency car at $ 10,000 was deducted $ 1000 from your account as margin and the user remain in your account the amount of $ 2,000 available margin.You now have a car in your name you can sell in the market .. To achieve the profit will be keen to sell at a price higher than $ 10,000.Now go to the market and looking for a buyer for the car at a price higher than $ 10,000 .. is not it?No .. Is not the case ..!!We will assume that the method of buying and selling cars in the country is in a public auction with the participation of all who wish to sell, purchase, where price of cars is changing depending on supply and demand.If the number wishing to purchase cars for the number of vendors will increase the price of cars and will continue to rise as long as there are a greater number of buyers.If the number wishing to sell cars for a number of buyers will decrease the price of cars and will continue to decline as long as there are a greater number of vendors.Now you have a car would like to sell ..Go to this market and will monitor the price of the car on the market that determines depending on supply and demand in the market, the car is desirable and there are a lot of people willing to buy them will increase the price from $ 10,000 to $ 11,000 for example, if there is more demand could rise the price to $ 12,000.Here you learn that all you have told Auto Shot is the amount of $ 10,000 is the price you bought the car tags, the car sold at the current market price of $ 12,000 which will be the winner no doubt.So when the price of the car $ 12,000 in the market to order an agency vehicle to sell the car in your name with this price, we will implement the Agency's command and the car will sell at $ 12,000, will deduct the $ 10,000 full value of the car, which prompts him and would you Arbounk the opponent margin user will add a profit, a $ 2,000 to your account to have ($ 12,000 - $ 10,000) and will become your account now has $ 5,000 ($ 3000 original account +2000 U.S. dollars profit from the deal).You can withdraw this amount, or withdraw part of it, as you can return the ball again.In all cases Stnam soundly in the night ..!!In exchange for that discount was $ 1000 from your account got a $ 2,000 profit, an increase of 200% of the capital .. Note that the capital was nothing more than a token was returned after the completion of the deal ..!!But what if I went to the market and found that the number of vendors than the number of buyers?And that there are not many who want to buy your car?Price of the car will fall from $ 10,000 to $ 9,500, for example.This means that if you sold the car at the current market, you will lose $ 500.Where you are if you ordered the agency cars to sell the car when he became the price of the market $ 9,500 would execute it and you'll get $ 9,500 and will be deducted from your account to have $ 500 to complete the value of the car in full, and will bring you the deposit paid by a margin user, so your account to be their = $ 2,500 (3000 $ original account - $ 500 loss).Of course you do not like this ..Believe me, no one wonders ..!!So wait, hoping to increase demand for your vehicle and return the price to rise.But what if not increased demand but increased supply?!!Price will drop your car more than $ 9,500 to $ 9,000.Here, ordered the agency to sell your car at the current price would be to deposit $ 1,000 St_khasmha Agency of your account and your account will remain at $ 2000.Wait for more ..But the price is still in decline will, for example to 8000 $.What will happen here?You can perhaps have to wait for more price due to rise.The agency, however, cars will not wait a single moment ..!!They are watching the price of cars in the market as you watch him completely ..!!They will not allow the price to fall by more than that ..Why?Because the amount you have available margin = $ 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 even decided to sell your car at this price the company will complete the rest of the price of the car and that withholding it from your existing account to have, they can discount $ 2,000 in margin you have available.But if the price of cars less than $ 8,000 means that your loss will be more than $ 2,000 then if you decide to sell the car will not enable the agency to complete the rest of the value of the car of your account and there was no margin available for only $ 2,000 only .. here will bear the agency is part of the loss.This does not allow it ever ..!!Everything that you can lose is the amount in the margin you have available.But what happens when the price of the car market to 8000 $?You will come from the agency so-called
 Margin CallIt is a warning that prompts you when the company either to sell the car immediately or to add more money for the margin you have available.What is this?We refer to the agency that monitors the price of cars cars all the time and with any change in the price of cars in the market Stomrha assume that you sell the car tags.And is always eager to bear the entire loss, and you are not.As they do not share your profit does not share your loss.When he was in the market price of the car $ 9,000 is not a problem for the Agency cars, because if you ordered it to sell the car at this price you will be able to complete the value of the car at a discount of $ 1,000 available margin that you have.And when the price of the car market in the $ 8,500 is also not a problem where the difference can be deducted from the margin available if ordered to sell the car at this price.But when the price of the car on the market $ 8,000 if ordered to sell the car the price difference will be deducted from the margin available to you which is all the margin you have available = $ 2,000If the price falls more - even a penny - will not be able to complete the car value of the discount from your account.If we assume that the price of the car on the market = $ 7,500 if I sold the car at this price will be your loss = $ 2500Sale price - purchase price$ 7,500 - $ 10,000 = $ --2,500Can deduct all the margin you have available, which is $ 2000 and $ 500 will not be able to be covered from your account and will bear this loss.Therefore, when we read:The current market price - purchase price = MarginCEATEC margin callWhat you have to do then?You have a choice of two:Either order the agency to sell the car at this price any sell at $ 8000 it will implement the Agency's command and set off against the difference of the margin you have available and so will be deducted $ 2000 and had thus completed the Agency the full value of the car ($ 8,000 current market price +2000 U.S. dollars the amount deducted from your account) and so return the deposit you paid user and margin in your account becomes $ 1000 for their ($ 3000 original account $ --2,000 discounted amount)And be your loss in the transaction is $ 2,000 incurred by you in full.If you do not want to sell at this price and you want to wait for more price may bounce back, you should add more money for the margin you have available.If we assume that you add $ 1,000 to the margin available will become available margin = $ 3,000Even if the price of cars fell to $ 7,000 the agency will be able to complete the full value of the car in case of sale at the current price.But what if the price of the car in the market to about $ 8000 I received a margin call was not a car Oba did not add more money to my account? What will happen?Agency will sell the cars at the car in your name $ 8,000 will not be waiting for you.Will be covered by it on their own .. You like it or not ..!!Fajova low price more than the car will sell at $ 8,000.As we have said it will not allow you to lose more than the amount in the margin you have available.Called the moment the agency to sell the car for fear that it will bear the lossAuto Close.This behavior just no doubt ..When prices are high, cars will get the full profit for yourself will not only be required to pay the full value of the car .. It's only fair that if the agency does not bear the loss incident from the lower prices .. they do not share your profit or loss.If I understand the previous example, I understand the principle upon which thetrading in margin basis.The system of margin trading is an opportunity for many people to enable them to trade more than the size of their capital several times with the retained profit fully and effectively as if they have the list and therefore can shop to get huge profits, a rate can not be obtained any other type of investment.Many are the people who have to engage effectively in the business world, but their biggest problem they do not have enough capital that they can work.Deluxe marginal trading system really cares about is capital!!You can understand that trading on a margin like a loan temporarily from the institution that deals with them .. where lend you the Foundation item that you want to trade in return for payment for a fraction of its value as a token of a redeemer, to reconsider the value of this product after the sell without you share a profit or loss.To ensure that does not take this product and run away without the return of remains of this item organization has reserved in your name, where you can sell them to order the institution to sell at the price you see you are fit, whether profit or loss should not exceed the value of the loss of the amount in your account at the institution, which will use the institution to cover the loss that I got to recover the value of the item is complete without shortages and in all circumstances.You will be able to trade different types of goods and sizes may exceed your capital is 200 times ..!!But before moving on to the margin trading system in the global markets .. We'll take more examples to make sure you understand the basis upon which this type of trading, which does not work you can think of it before understanding the full.