Types of Forex Margin

Types of Forex Margin : Forex Margin said the money must be paid by the investor and the deposit for any kind of margin. Here we look at a single type of fields.

Initial Margin / initial margin
In Indonesia, the Initial Margin Initial Margin also that the amount of money paid by investors during the opening of the account call.

Number of the original contract between the investor and broker, usually expressed as a percentage of the contract value. In commodity futures initial margin of about 5-10% of the contract value is normal. Margin value of the contract time and price fluctuations that may occur. In currency trading, initial margin is set at 1% of the contract value. So much less than the initial income from futures trading in commodities. Since the market value of the currency of the contract is two $ 100 000 and the small amount of 10, 000, then the value of the initial margin trading with Forex is USD1, 000 (US $ 10 million), or $ 100, when the exchange rate is 10,000 rupees to the U.S. dollar (USA), to adapt.

Variable Range
Conditions will be used in the range of Indonesia, an additional field cut to the size of the border, which were then less than the initial margin amount paid as a result of the development of prices compared to the original estimate.

Margin Maintenance
The term is used in Indonesia, the minimum limit. This margin is the amount that an investor should be kept or maintained in the transaction. In general, a minimum limit is set at 80% of the initial margin of about 75%.

Margin Call
This type is similar margin to margin, ie amount of funds to be paid by the investor. However, the margins should be done if funds must be exclusively in maintenance margin instead of the initial margin. If the investor receives a margin call means that investors need to add funds to the initial margin level, if not done, will close the position of the brokerage firm.

1 comment:

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