Friday, August 23, 2013

Used and Usable margin


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 this amount without prejudice to decide to buy a car, or 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, which is a refundable deposit will be returned to your account after the sale of the car, whether sold at a profit or a loss.

Margin: which is the amount left in your account after deducting the user margin, and this amount is the maximum amount that allows you to defeat in the transaction.

How calculated margin username?

We do not want that much interested in how to calculate the user's own margin often will not need it where you company will determine in advance the amount that will be deducted from your account as a token for every unit of the commodity. In the previous example, the agency will tell cars it will be deducted the amount of $ 1,000 from your margin account user for every car purchased. If I bought two cars will be deducted from your $ 2,000 margin will remain in the user account $ 1,000 margin available.

In spite of that the company will deal with Stgnek about the need for a margin account user on your own, but it would be very useful to know how to do it yourself.
Can calculate the margin of the user who will be his opponent as a token of any commodity provider with any company the following equation:

Used margin = full value of the item purchased / multiplier ratio

In the previous example: full value of the car = $ 10,000 and leverage ratio allowed by the company is 10 times, which means that the company has doubled you 10 times the capital, so the margin which agency St_khasmh:

Used margin = full value of the item / multiplier ratio
                  = 10,000 / 10 = $ 1,000

Had I thought about buying cars instead of the car will be used margin which will be deducted from your account:
Used margin = 20,000 / 10 = $ 2,000

In global markets deal that will allow brokerage firms to trade on a margin of various types of goods for each company a certain quality of goods, are sold every kind on the basis of a fixed unit called the size of the contract is less and are traded unit of the commodity.
In the previous example, the cars will be the size of the contract = one car worth $ 10,000, that is, you can not trade for less than a car worth $ 10,000 and you can be traded in multiples of this number was traded two cars or three, etc. ..
The course allows you to trade a car and a half!!

And the method of calculating the margin User:

Used margin = number of contracts * contract size / multiplier ratio

And you will know the size of the contract deal by the company and the proportion of multiplexed in advance to deal with, one of the things that may vary from one company to another.

In our previous example:

We know that the size of the contract = one car worth $ 10,000 and that the multiplier ratio = 10
So we know that if we traded the car amount which St_khasmh and the cars of Our agency is:
Used margin = number of contracts * contract size / multiplier ratio
                  = 1 * 10,000 / 10 = $ 1,000
But if we wanted to buy two cars will be:
Used margin = number of contracts * contract size / multiplier ratio
                  = 2 * 10,000 / 10 = $ 2,000

So you can calculate the margin used for any number of cars If we assume that you want to buy 3 cars once will be charged the amount of $ 3,000 margin the user.

If we assume that you have dealt with the agency cars have the same value of the car but they give you a percentage increase equal to 20 times means that this 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 a car one:
Used margin = number of contracts * contract size / multiplier ratio
                  = 1 * 10,000 / 20 = $ 500
Means that this agency will be deducted from your account the amount of $ 500 for every car trade.

 How calculated margin?

Calculated by the following simple equation:

Margin = Equity - Margin user

Only the previous example:

If you deposit $ 3,000 in advance in your account that you opened the agency cars Frshehadk to have = $ 3,000
When I decided to buy a car, the company deduct the $ 1,000 margin the user, it will be the margin you have available now:
Margin = Equity - Margin user
               = 3000 - 1000 = $ 2000
It is the maximum amount you can lose in the deal.

If we assume that you decided to buy two cars, $ 2,000 will be deducted user margin and margin will be available for you now:
Margin = Equity - Margin user
              = 3000 - 2000 = $ 1000
It is the maximum amount you can lose in the deal.

Until now it has become to learn the following:

    That the system of margin trading is a system that allows you the possibility to trade goods worth more than your capital fold.
    This is the kind of trade deal with the private companies are doubling your capital several times as it allows you to trade a commodity exchange for discount fraction of its value as a token of the user.
    Not sharing these companies in terms of profit or loss only asking you to pay the full value of the item sold and limited mission to the implementation of the buy and sell orders that you set a price that you choose.

If ordered to sell the item at a higher price than the purchase price it will be implemented and will be deducted full value of the item and would you Arbounk its profit plus full and like you own the item actually. If ordered to sell item at a lower price than the purchase price it will be implemented and will be deducted from your account to have completed a full value of the item.

No comments:

Post a Comment