What is Free Margin? | FXTM Learn Forex in 60 Seconds

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

[IamAjijul]

if my currency pair like EURUSD then why you showing balance in USD. EURUSD means my base currency is in EUR.

[arthuri]

can you please explain why you calculate the loss in that method and how it fit the regular one:
each PIP for LOT worth 10$ in EUR/USD, than for your example it would be:
LOT * 10 * QoutedCurrency = 2*10*$= $20
95 * 20 = $1, 900

other way to calculate it:
1) open position: 200, 000 EUR * 1.20000 = $240, 000
2) closing position: 200, 000 EUR * 1.19050 = $239, 100
the loss: $240, 000 - $239, 100 = $1, 900 (also)

but in your example you calculate the loss as $2, 280,
can you explain please where is my mistake?

[benjaminlishika]

What is a spread & how is it calculated

[vicxthevictor]

can i ask a question how would you know a margin percentage?

[AmBx]

hello, what is the difference between trading directly with the amount and with this complicated method (trading on margin)