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

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
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