How To Place A Trade With FXCM Markets: Monitoring Positions And Margin
  1. How To Place A Trade With FXCM Markets: Platforms
  2. How To Place A Trade With FXCM Markets: Placing A Trade
  3. How To Place A Trade With FXCM Markets: Monitoring Positions And Margin
  4. How To Place A Trade With FXCM Markets: Using MetaTrader4 To Place Trades

How To Place A Trade With FXCM Markets: Monitoring Positions And Margin

Margin is defined as capital borrowed to a trader from a broker that enables them to buy more currency than otherwise possible. Since currency movements occur in such small increments, margin is necessary in the forex markets for traders to generate any sizeable profit. However, using too much margin can be dangerous, since it also amplifies downside.

SEE: Adding Leverage To Your Forex Trading

Like most forex brokers, FXCM enables its clients to trade on margin. While the broker offers a maximum of approximately 50:1 leverage, clients can lower their leverage by choosing Change-Margin Request in their account settings. Margin usage at any time can also be monitored within the FXCM Trading Station in the Accounts section, as well as when placing a trade.

Figure 3: Accounts


Notably, margin calls differ in MetaTrader 4 relative to other FXCM accounts. When a margin call occurs, trades will be closed one by one until Free Margin is greater than zero. Normally, these trades are closed in order of size of their loss, from the largest to the smallest, as recorded in the Profit column at the time of the margin call. Finally, FXCM's Trading Station provides real-time information on all open positions via the Summary window located on the bottom of the platform. In this window, traders can view each position's average buy/sell price, total amount, gross profit/loss, net profit/loss, as well as any stops and limits that are placed on the orders.

Figure 4: FXCM Summary Window


How To Place A Trade With FXCM Markets: Using MetaTrader4 To Place Trades

  1. How To Place A Trade With FXCM Markets: Platforms
  2. How To Place A Trade With FXCM Markets: Placing A Trade
  3. How To Place A Trade With FXCM Markets: Monitoring Positions And Margin
  4. How To Place A Trade With FXCM Markets: Using MetaTrader4 To Place Trades
RELATED TERMS
  1. Buying On Margin

    The purchase of an asset by paying the margin and borrowing the ...
  2. Trading Margin Excess

    The funds that remain in a margin trading account that are available ...
  3. Margin Call

    A broker's demand on an investor using margin to deposit additional ...
  4. Margin Debt

    1. The dollar value of securities purchased on margin within ...
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin ...
  6. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions ...
RELATED FAQS
  1. What is the difference between extensive margin and intensive margin in economics?

    Find out why it is important for traders to understand the difference between initial margin requirements and maintenance ... Read Answer >>
  2. How does margin trading in the forex market work?

    When an investor uses a margin account, he or she is essentially borrowing to increase the possible return on investment. ... Read Answer >>
  3. How much can I borrow with a margin account?

    Understand the basics of margin accounts and buying on margin, including what amount investors can typically borrow for purchases ... Read Answer >>
  4. What does it mean when I get a maintenance margin call?

    Understand how maintenance margin calls work, and learn about how margin requirements are different for trading stock versus ... Read Answer >>
  5. Do you have to sell your stocks when you get a margin call?

    Understand the implications of a margin call and what an investor's options are when the stock he purchased on margin falls ... Read Answer >>
  6. What are my options when I get a margin call?

    Understand what a margin call means and the two primary options for meeting a margin call, such as depositing additional ... Read Answer >>

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