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Margin Requirement (FX)
Margin Based Trading Trading in the currency markets requires a trader to think in a slightly different way about margin. Margin on the forex is not a down payment on a future purchase of equity but a deposit to the trader's account that will cover against any currency-trading losses in the future. A typical currency trading system will allow for a very high degree of leverage in its margin requirements, up to 400:1 in some cases. The system will automatically calculate the funds necessary for current positions and will check for margin availability before executing any trade. |
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Mada Financial © All Rights Reserved *Energy, hedging capability and the ability to earn interest on cash balances are available to MadaTrader platform clients only. †Forex (FX) trading on margin carries a high level of risk and is not suitable for all investors. Forex is traded with a high degree of leverage, which can work for you as well as against you, and it is possible to loss more than you invest. You should only invest funds that you can afford to lose and do not need to support yourself or your family. You should carefully consider all risks involved with forex trading as well as your financial situation, investment objectives, and risk tolerance before investing. Forex is traded over-the-counter (OTC) and not on a regulated Exchange. Market conditions may adversely affect order execution. International Awards and Recognition
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