The second lesson
Used margin and the margin available
When you open an account with a company that allows trading on a margin which will be deposited in advance a fixed amount will remain without prejudice to the amount you decide to buy a car, that is, to decide to enter into a deal, then your account will be divided into two parts:
Used margin: a deposit which will be deducted in advance, a refundable deposit will be returned to your account after the sale of the car, whether sold at a profit or a loss.
Margin: an amount that is left in your account after the deduction of margin used, and this amount is the maximum amount that allows you to defeat in the transaction.
How to calculate the margin used?
Do not want to pay much attention to how to calculate the margin in your own user often will not need so you will determine where the company is already the amount will be deducted from your account as a token for every unit of the commodity. In the previous example will tell you that it auto agency deducted $ 1000 from your user margin for every car you purchase. If I bought two cars will be deducted from your $ 2000 margin user will remain in your account $ 1000 margin is available.
In spite of that the company will deal with it Stgnek about the need for a margin account used only for yourself that it would be very useful to learn how to do this yourself.
Can calculate the margin of the user who will be deducted as a token of any commodity by any company with the following equation:
Used margin = value of the item purchased with a full / double ratio
In the previous example: full value of the car = $ 10,000 and the percentage multiplier that allows the company is 10 times, ie, that the company doubled your capital 10 times, so that the margin St_khasmh Agency:
Used margin = value of the item full / double ratio
= 10,000 / 10 = $ 1,000
If I thought of buying a car two cars instead of the user that the margin will be deducted from your account:
Used margin = 20.000 / 10 = $ 2,000
Dealing in global markets that allow brokerage firms to trade on a margin of different kinds of goods for each company a certain quality of goods, are sold on the basis of each type of unit called a fixed size of the contract, the lowest unit is the trading of the commodity.
In the previous example about cars the size of the contract = one car worth $ 10,000, meaning you can not be traded for less than a car worth $ 10,000 and you can be traded in multiples of this number are trading as if the car or three, etc. ..
Of course you are not allowed to trade a car and a half!!
And the method of calculation used margin:
Used margin = the number of contracts * contract size / ratio multiplier
The contract size will know who is dealing with the company and the percentage of doubling in advance to deal with them, one of the things that may vary from company to company.
In our previous example:
We know that the size of the contract = one car worth $ 10,000 and the percentage multiplier = 10
So we know that if we are trading in a car, the amount which St_khasmh agency cars from our agenda is the following:
Used margin = the number of contracts * contract size / ratio multiplier
= 1 * 10.000 / 10 = $ 1,000
But if we want to buy two cars will be:
Used margin = the number of contracts * contract size / ratio multiplier
= 2 * 10.000 / 10 = $ 2,000
Thus you can calculate the margin used for any number of cars If we assume that you want to buy 3 cars will be a one-time deduction of the amount of $ 3000 as margin the user.
Even if we assume that you have dealt with the agency cars have the same value of the cars, but it gives you the percentage of increase equal to 20 times means that the agency will allow you to trade Bassarat worth 20 times the amount paid as a token, you can calculate how much is the margin which will be deducted if you want to trade in a car is the same:
Used margin = the number of contracts * contract size / ratio multiplier
= 1 * 10.000 / 20 = $ 500
This means that this agency will be deducted from your account $ 500 for each car traded by.
How to calculate available margin?
Calculated the following simple equation:
Margin = Equity - Margin user
Only previous example:
You deposit $ 3000 in your account is already opened by the agency have a car Frshehadk = $ 3000
When I decided to buy a car, the company deduct $ 1000 as margin user, it will be the margin you have available now:
Margin = Equity - Margin user
= 3000 - 1000 = $ 2,000
The maximum amount you can lose in the deal.
If we assume that you decided to buy two cars, will be charged $ 2000 margin and the user will be the margin you have available now:
Margin = Equity - Margin user
= 3000 - 2000 = $ 1000
The maximum amount you can lose in the deal.
Until now it has become know as follows:
That the system of margin trading is a system that gives you the possibility to trade goods worth more than your capital times.
Is this type of trading to deal with private companies are doubling your capital several times as it allows you to trade a commodity exchange for a discount as a fraction of its value as a token of the user.
These companies are not about sharing profit or loss where there is only asking you to pay the full value of the item sold and after the implementation of its mandate is limited to buy and sell orders that you set a price that you choose.
If the item ordered it to sell at a higher price than the purchase price will be implemented and it deducted the value of Item is complete and you will return your deposit plus full profit as if you actually have the item. The item ordered it to sell at a lower price than the purchase price will be implemented and it will be deducted from your account to have the value of the item is completed in full.