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

    Using simulated trading to practice buying and selling securities ...
  2. Ring Trading

    The method by which certain types of investment business is conducted ...
  3. Demo Account

    A trading account that allows an investor to review and test ...
  4. Application Programming Interface - API

    An interface or "go-between" that enables a software program ...
  5. Mobile Trading

    The use of wireless technology in securities trading. Mobile ...
  6. Trading Software

    Computer programs that facilitate trading of financial products ...
  1. What commodities are not tradable?

    Learn about some of the durable and consumable goods that are not considered tradable commodities and why these goods cannot ...
  2. How does investing in the banking sector differ between the U.S. and Canada?

    Discover why some investors prefer Canadian to U.S. banks. Learn how trades of Canadian bank shares are executed in both ...
  3. Should I attempt to trade futures myself using software, or is this better left in ...

    Discover the factors to consider when deciding whether to trade futures on your own or to commit your trading decisions to ...
  4. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ...

You May Also Like

Related Tutorials
  1. Trading Systems & Software

    Beginner's Guide To J-Trader

  2. Trading Systems & Software

    Beginner's Guide To CQG Integrated Client Trading Platform

  3. Trading Systems & Software

    Guide To Smartphone Forex Apps

  4. Trading Systems & Software

    Automated Trading with MultiCharts

  5. Trading Systems & Software

    Creating Automated Trading Systems Using Interactive Brokers

Trading Center