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MARGIN REQUIREMENT

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MARGIN REQUIREMENT KEEPS TRADER OPPORTUNITIES

Margin requirements in futures trading is a guarantee or a number of funds required to make transactions. The amount of margin needed to conduct transactions varies on each product in futures trading, and often changes in margins are needed based on the rules of the relevant institutions.

The smaller the margin needed to make a transaction, tends to tempt traders to enter in a large number of lots, in other words the potential profit will be greater, but also accompanied by the risk of the same loss.

While with a larger margin requirement, the resilience of traders' funds to face the volatility of large price movements will be stronger. If the resilience of funds is strong, traders can still take advantage of opportunities found in the financial markets to make a profit.

For forex products, for example, with an equity of $ 10,000, and a margin requirement of $ 1,000 / lot, customers can take a maximum of 10 lots. Meanwhile, if the required margin is greater, for example, to be $ 3,000 / lot, the customer can enter a maximum of 3 lots.

Futures trading often plays the psychology of traders. Sometimes traders take positions in lots of lots to get big and fast profits, but forget to pay attention to the resilience of their funds. The application of larger margins can prevent traders from over-trading which can affect long-term profits.

The greater the margin needed for the transaction, the greater the resilience of the funds and the smaller the potential margin call.

The table below shows an illustration of the difference in margin calls, with different margin requirements and equal equity of $ 10,000.


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#1 - March 14, 2019, 12:33:20 AM
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estimation of margin trading is good, with these estimates we can pay attention to money management as well as possible.
#2 - March 14, 2019, 05:58:44 AM

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estimation of margin trading is good, with these estimates we can pay attention to money management as well as possible.
thanks.

you should also understand the risks of forex trading. and understand the margin when trading.
#3 - March 14, 2019, 01:43:54 PM

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Margin level must be considered because maintaining margin level in a safe position is one way to minimize risk, but we don't just do it occasionally, we must discipline it so that trading security is always maintained.
#4 - March 15, 2019, 08:21:36 AM

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Margin level must be considered because maintaining margin level in a safe position is one way to minimize risk, but we don't just do it occasionally, we must discipline it so that trading security is always maintained.
always maintaining margin levels at a safe level is the duty of a trader to maintain his trading account so as not to get hit by mc
#5 - March 21, 2019, 12:36:13 AM

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always maintaining margin levels at a safe level is the duty of a trader to maintain his trading account so as not to get hit by mc
I agree, indeed the job of the trader is to minimize risk while forming a profitable system to achieve consistent profit.
#6 - March 21, 2019, 07:13:08 AM

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I agree, indeed the job of the trader is to minimize risk while forming a profitable system to achieve consistent profit.
That's right, sir, with minimal risk, then the profit will follow accordingly
#7 - March 21, 2019, 12:56:00 PM

paidto

That's right, sir, with minimal risk, then the profit will follow accordingly
many say like that, by minimizing the risk then the profits will follow it, but if in my opinion also have to have good trading techniques too
#8 - April 28, 2019, 12:42:26 AM

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many say like that, by minimizing the risk then the profits will follow it, but if in my opinion also have to have good trading techniques too
I also agree with your opinion, it is a package between trading techniques and all the elements that support it
#9 - April 29, 2019, 12:36:43 AM

paidto

I also agree with your opinion, it is a package between trading techniques and all the elements that support it
all of that must be able to become a strong unit and not be able to walk alone to be able to make good results



#10 - April 30, 2019, 12:59:06 AM

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all of that must be able to become a strong unit and not be able to walk alone to be able to make good results
right sir, like a car that has 4 wheels, then all wheels must be installed firmly, if one of the wheels is not installed then an accident can occur
#11 - May 01, 2019, 01:25:43 AM

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often I if trading always drains margins, in fact it is indeed a trader's habit,
#12 - May 01, 2019, 11:48:47 PM

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I use $ 100 capital on a micro lot account with a maximum of 1 micro lot. margin resistance reaches 1000 pips, what do you think?
#13 - May 02, 2019, 09:49:01 AM
« Last Edit: May 06, 2019, 02:09:51 PM by Admin »

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examples of management like this are good, because that way I come to understand the so-called good trading, so I will learn it later and I will apply it later
#14 - July 30, 2021, 04:49:58 PM

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In my opinion, understanding the margin is quite important so that we know the maximum risk limit that we must tolerate, so that there is no margin call
#15 - July 31, 2021, 03:09:45 PM

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