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Wednesday, April 28, 2027

Some of the concepts

We have had so far a lot of very important concepts to understand the mechanism of trading, although it is clear concepts does not have a lot of the complexity, it is important to reiterate it as it is the cornerstone in understanding the principles of action in trading on international markets.Of the concepts that we have mentioned:One unit of the commodityA minimum can be traded by the commodity. Called LotDealing institutions that work with the system marginal things can be traded in fixed units each unit is called a lot lot.In our example above the product is the car and one unit of which is the one car, which is the minimum that you are trading.You can not trade half a car .. But you can trade in multiples of this unit you can trade any car or three, etc. ..In our previous example Lout = one car.There are institutions that allow you to trade with Soy beans and less by the end of the trading is that any 5000 Bushel here Lout = 5000 Bushel
 
. There are institutions that allow you to trade in gold and is less an end to trading is 560 ounces, that is meager here = 560 oz.You can trade Plaut, two or three and Bamadaafath, and you can not be traded or half lot of Plaut and a half.Contract SizeIs the actual value of the commodity that allows you to trade by the institution.In our example above the product is a car and the actual value = $ 10,000When you buy 1 lot of requests from the agency, so you are required to purchase one car worth $ 10,000 and when you ask buy 2 lot, so you are required to purchase two cars worth $ 20,000 (2 * 10.000) and so on ..Contract size varies from one organization to another, one of the basic information we'll explain before dealing with the institution that will open the way for trading on margin.
 
Leverage
 
Which is the ratio between the value of the item that you want to trade in and between the value of the bond that asks you to pay (used margin) to allow you to trade in this commodity.The multiplier can be calculated by the following formula:Leverage = the number of contracts * Contract Size per / used marginIf we assume that the agency cars allow you to trade a car and one (1 lot) worth $ 10,000 in exchange for your account is deducted from the amount of $ 1000 for each lot of margin user .. You can calculate the ratio of double:Leverage = the number of contracts * Contract Size per / used margin
          
* 1 = $ 10,000 / $ 1,000 = 10Which can be expressed in any form 1:10 for every $ 1 paid by a user margin will be doubled to ten times, ie for every $ 1000 paid by the user margin you can trade in a commodity worth $ 10,000Q: I assume that there is a dealership allows you to trade four cars, each worth $ 10,000 for every $ 1000 paid by the user how much margin percentage multiplier provided by this agency?Answer: multiplier = number of contracts * Contract Size / Margin user
                     
= 4 * $ 10,000 / $ 1,000 = 40Can be expressed in the format 40:1 means that for every $ 1000 margin will be deducted user you can trade a commodity worth $ 40,000 which is equivalent to 4 cars at once.And doubling the proportion that may be granted to you vary from one institution to another, from which we'll explain the basic information before handling system marginal.
 
Used MarginWhich is the amount that is deducted from your account temporarily as a token refund for the product that you choose to trade it, this amount represents a small percentage of the value of the item you Bhdzh institution temporarily until the completion of the transaction .. The return him to your account after completion of the transaction and regardless of the outcome of the deal, both ended in profit or loss.Used margin is calculated according to the following equation:Used margin = number of contracts * The contract value / percentage multiplierIt is enough to know the value of the contract with the organization that deals with the percentage multiplier that gives them so you can easily find out the amount that the company temporarily St_khasmh margin of your user.In our example above the size of the contract = $ 10,000 and doubling the proportion is 10 times that you know how much the agency will be deducted from your account if you choose to buy 1 lot of any one vehicle:Used margin = number of contracts * The contract value / percentage multiplier
                  
* 1 = $ 10,000 / 10 = $ 1,000 will be deducted for each lotHad I thought to buy 3 cars or 3 Lott, the margin of the user who will be deducted from your account:Used margin = 3 * $ 10,000 / 1000 = $ 3,000, $ 3,000 will be deducted from your account as margin user when you buy 3 cars (3 lot).Question 1: If we assume that the size of the contract with the organization = $ 20,000 and doubling the proportion granted = 20 times a 20:1 margin, how will the user who St_khasmh this institution if you purchase a Lot 2?Answer: Used margin = number of contracts * contract size / percentage multiplier
                            
= 2 * $ 20,000 / 20 = $ 2,000 will be deducted margin user.Question 2: On the same assumption the former, how would you think if you used margin to buy Lot 4 of this institution?Answer: Used margin = 4 * 20.000 / 20 = $ 4,000 will be deducted margin user.
 
Usable MarginWhich is the amount remaining in your account after deducting the margin from the user, which is the maximum amount that allows you to defeat the deal.The main purpose of the margin available is that it is not charged in the event of loss, if lost in the car your trading amount of $ 500 will be deducted from your account to complete the full value of the car as explained above.It is important to know that the organization that deals through which the margin can not allow you to lose in the deal more than the value of the margin available in your account.When you choose a commodity trading will be deducted from your used margin I. .. Will come out of this amount from the account of the deal like a non-existent, but in all cases will return to your account after you have finished from the sale of the commodity.After that is truncated margin user would remain available margin in your account, and that expressed by the following equation:Margin = Balance - Margin userAs you are watching the price of the commodity that you have in the market, the organization that deals with it will monitor the price as well, as long as the price of the current is greater than the purchase price it so that if it decided to sell them immediately would be a winner, you will not interfere with the institution and will leave you the freedom to choose the right price to sell, but that fell The current price of the commodity for the purchase price if it so decided to sell at this price will be the loser will not interfere with the institution as long as you have it in the margin available to compensate for this loss.But once that becomes the difference between the current price of the commodity and the purchase price equal to the margin of her available, you will be told to end the deal or add more money to your account at the institution until the opponent, in case the price continues to decline.If you do not behave yourself and you do not end the deal did not add more money to your account, the institution itself will sell the item at the current price without waiting for you to order, fearing that without the largest price drops to be in your account to compensate for the loss.So Valhamc is available that gives you the ability to bear the loss and wait until conditions improve.From here you learn to the extent that the margin you have available the largest extent that it is best for you.Let us take an example: Suppose that the agency allow the car to trade in a car, at least one value of each car $ 10,000 and doubling the proportion 10 timesSuppose you opened an account with this institution the amount of $ 3,000, we'll see what will happen if I thought about trading in one car and what will happen if I thought about trading car:Trading in one car:If you think that trading a car and one (1 lot) so I bought a car, one of the institution on a margin, the margin will be used:Used margin = number of contracts * contract size / percentage multiplier
                  
* 1 = $ 10,000 / 10 = $ 1,000 will be deducted $ 1000 from your account on a temporary basisMargin available in your account balance = - Margin user
                           
= 3000 $ --1,000 $ = $ 2000 this amount will remain in your account as margin available, you know that this amount is the maximum amount that can allow you to defeat.If we assume that you went to the market and found that the price of the car became = $ 12,000This means that if you sold the car at this price you will be able to pay the full value of the car and will remain of value sold $ 2,000 will be added to your account the gain to you (12.000 -10.000)Greed may have to wait a further increase ..But suppose that the price of cars dropped to $ 9000 for the car, meaning that if you decided to sell the car at this price the promise of $ 1,000 will be deducted from your account at the institution.Suppose that you waitedBut the price fell more to $ 8,000 for the car, meaning that if it decided to sell at this price will lose 2000 $ (8000-10.000 = -2000) and this amount will be deducted from your account at the institution.Here you will not allow the institution to wait any longer, and will ask you to sell the car at this price and if you want to wait you must add more money to your account to be able to rival you in case the price falls more.Thus the view that the available margin, which was to have given you the ability to be patient until the price to $ 8,000 per car, where you are until this moment able to compensate for the loss of your difference.
 
In the case of trading car:Suppose you from the start I decided to trade in two cars together, what will happen?User margin that will be deducted is:Used margin = number of contracts * contract size / percentage multiplier
                 
= 2 * 10.000 / 10 = $ 2000 This will be deducted from your organization has a margin user.Margin = Balance - Margin user
              
= 3000 - 2000 = $ 1000 is available margin, which is the maximum amount you can lose in this deal.Suppose you went to the market and found that the price of the car became a $ 12,000 car which if you sold the cars at this price you will be able to pay the value of the full which is $ 20,000 (2 * 10.000) and will remain in your account the amount of $ 4,000 Sithsal by the gain to you ($ 24,000 eighth cars at market price Current - $ 20,000 eighth cars claimed the institution).There is no doubt that the largest profit in trading profit in the car of trading one car.Suppose you hope, I waited a further increase.But the price has dropped $ 9,500 per car.Here, decided to sell the cars at the current price you will get $ 19,000 and will be your loss is $ 1,000 will be deducted from your account but you will not be able to compensate for the loss in case the price falls more than that because the amount in the margin you have available is $ 1000 which is the maximum amount you can lose in transaction, so the institution will ask you to sell the cars at the current price or add more money to your account to be able to wait any longer may re-price rise. If they do not the institution itself will sell the cars and the difference will be deducted from your account, for fear that the price drops more, no company can make up the difference from your account.Note that in the previous example, because the margin available to you have been able to more than the ability to be patient until the price to $ 8000 when it became the less margin available can not be patient for more than the price of $ 9,500.All we care about to learn that, regardless of the amount of contracts traded by that apart from the current price of the commodity, the available margin in your account is the maximum amount that allows you to lose in the deal.So always check the following equation:(Number of contracts * price sale) - (number of contracts * purchase price)> = available margin (greater than or equal to)If there is some difficulty in understanding the previous equation, it is sufficient to remember:You can not lose more than the margin available to you regardless of the number of contracts traded by.Remember that the margin trading system is the only way available to you to get the profits will not be able to get it only if you are multi-millionaires are the fastest way to achieve enormous wealth of the capital in a very negligible and in record time.Remember that this road is a realistic way, legal and legitimate by millions around the world, as long as I heard them, and after reading this topic will be able to be one of them said that given this area is worth the effort, practice and learn.An area that is without a doubt, is the area in which millions are manufactured ..An area that is born rich.I also hope that there is no fear of the previous concepts and you think you are on the verge of a tough test in math!!Notions of the former is very clear and if you find some difficulty in understanding it is because they are new to you, we want to assure you that a little practice you will not need to calculate anything, but will be able to easily and instantly see the margin used and available margin and everything related to Besafqatk without having to calculate anything .We also want to assure you you In the course of actual work in trading on the stock exchange will not need to calculate the margin of the user or available margin or profit and loss account will be all that automatically you will be able to see the margin available, which you have in every moment and will be able to find out how much your profit and loss at every moment .What we have mentioned the previous concepts and equations associated with them only for reference when you need to be able to understand things correctly, it is sufficient to understand the previous concepts in general and when you read will follow you for your understanding and is discerned in front of you even more.

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