Trading on margin means borrowing money to increase the amount of the exposure.
Online forex
trading on the margin means you can buy a large sum of foreign currency with actually paying only for a fraction of the investment.
Not exact matches
But according to Kraken's blog post
on the subject, that doesn't
mean «that
margin trading will be available when the new site first launches, but it does
mean that
margin trading will be available very soon.»
With Saxo Bank you have a 10:1 leverage
on this instrument,
meaning you only have to place 10 % of the
trade amount
on margin.
However, inherent risks such as contingent liability (where your liability may be greater than the initial purchase price of the investment),
margining requirements (where you are required to make a series of payments against the purchase price, depending
on whether the underlying investment or index is moving in your favour) and international exchanges (which can
mean a reduced level of investor protection, as well as currency fluctuation if the investment is not
traded in sterling)
meant these were out of reach.
The result (based
on the magic of compounding)
means that
trading on margin tends to eat into your principal.
Your risk appetite
means you want to
trade on margin.
The actual extent and pace of
mean reversion in profit
margins will depend
on other factors besides fiscal consolidation and unemployment:
trade deficits, credit creation, tax policy, antitrust enforcement, etc..
In addition,
trading on a
margin basis
means that any market movement will have a proportionate effect
on your deposited funds.
Understand the
meaning of Currency Regulator in Forex
trading and its influence
on the T
margin rules
Any good trader knows how much money he / she can lose for any given
trade and I think newbie's only look at how much they can make, even if that
means going negative
on option or future
margin or short selling or whatever.
As an investor, you can
trade «
on margin», which
means that your broker will lend you money to conduct a transaction.
The investigation led to a temporary freeze
on margin trading, traditionally used as a
means of capitalizing
on short - term price changes.