Lesson 7 – Example Forex Margin

AdminBy AdminNov 10, 20170

In this lesson, let us see what happens in practice when we decide to invest a small amount on the Forex and more specifically in the currency pair EUR / USD. The best thing in this case is to repeat the same procedures with the same platform, in order to have a better overall picture and learn to perform the operations after a first practical “dictated”. So, start by downloading the Plus500 platform and installing it. Or, click on this link and then “webtrader, no need to download.”

1

Well, we are ready to start.

Launching the platform will automatically open the section dedicated to currencies, as you can see below.

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As you can see, on the left you can also choose other financial instruments, including foreign exchange, or Forex currency pairs. On the right, we have selected the EUR / USD and below it displays the torque graph selected. Given the downward trend, we aim on the fall in order to provide an example of a trading operation.

2

To bet on the decline, although we have not purchased anything before, we click on the button “Sell” on the EUR / USD

This window appears.

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moment I clicked “Sell” the rate was 1.27. This rate will continue to change in real time until you will click “Sell” Also in this window. Therefore, we decide an amount of EUR / USD to be negotiated and click on Sell. As you can see, here it says “Use the leverage” and in fact to buy an amount of 6,000 € MARGIN DEFAULT to use a guarantee of 30 €. We could set the stop limit or stop loss but I prefer to do it in a later lesson. However, remember that it is always good to at least set the stop loss! In this way you will avoid incurring any sudden declines on which the instrument traded. Click on sell and see what has changed in the main window.

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As you can see, under the currency pair EUR / USD it is pop the position we have open. The ID is your identification number. P & P is going to profits and losses. At the moment, just launched, it is zero.

On the same screen, at the bottom we left we find the information you give us an overview of our situation, very useful if you invest on several products simultaneously.

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mind you that this refers to the maintenance margin. The initial margin, however, was 30 €. In fact, as you can see from the difference between the Equity and the match funding is available, there are just 30 €, in fact, equal to the initial margin.

Now, to get detailed information about each position we open, clicciamo of “open positions” at the top.

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The

Now

Excuse me, but did not enter all in a single screenshot. Well, as you can see all the details and find the buttons to close the position or set stop limit and stop loss. You can see the difference between the initial margin and the maintenance margin.

After twenty minutes, I close the position. Now mind you that from the moment I made the screenshot and the actual close there was another shooting upward, so I lost a little something.

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However, by clicking on “closed positions” I can retrieve the data and show them

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The transaction was closed in the positive. 30 I have earned by investing € 6, if I had invested 300 would earn € 60. In a few minutes. How many? let’s see …

Opening hours forex

30 minutes, the time in which I wrote the article. While writing I saw that I was earning even more than 7 Euros, but I wanted to wait for the final time to provide a full picture. By the way. We see our new general position. We go back on the “negotiates” and lower left we find:

As you can see, since there are no more open operations there is more difference between helpful and equity. Remember what was available before? 17,038.28. To these must be added the 6.15 (and arrive at 17,044.43) plus 30 € of initial margin and we arrive at 17,074.43. Missing 47 cents, where are they?

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