higher than the margin utilised for trades. What are the other important terms that can found on a trading window? Equity: Equity is kostenlose forex-vps trial your account balance plus the floating profit/loss of your open positions. But what if the market keeps on going against you? Therefore, the margin level will be 100. Margin: Margin is calculated based on the leverage, but to understand the margin, lets forget about the leverage for now and assume that your account is not leveraged or indeed its leverage is 1:1.
When you have some open positions and for example they are 1,500 in profit in total, then your account equity is your account balance plus 1,500. What is equity in Forex? You may need to read the above explanations for a few times to completely digest the terms I explained.
What does equity in Forex refer to? Needless to say that the losing positions must be closed to balance out the equation and protect the broker's leverage capital. You may take a look at where the equity is listed. Thanks for your time and have a great day/night. This refers to the total starting balance in the trader's account on the whole. The market can keep on going against you forever and the broker can not pay for this continuous loss. It is essential to note that traders who suffer the dreaded margin call are those traders who do not comprehend the interrelationship between leverage, equity, margin and the account balance as such. We should outline that it is not influenced by any unendliche Wohlstand forex review open positions until all of your active trade positions are closed.