Variable Margin

An indicator which defines the possible profit or loss from an open (at the present moment) trade. The volume of equity during the course of a trade is measured (increases / decreases) by the size of the Variable Margin. Margin can be positive or negative depending on whether the trader has made a correct forecast. Where a trader holds a sell position, the variable margin is the difference between the price at which the currency was sold and the current price. Where a trader holds a buy position, it is the difference between the current price and the price at which the currency was purchased. Variable margin is added or taken from the account at the end of the session. As such, the margin size will be equal to that of the trading outcome only if the position was opened within one session. Otherwise, the variable margin will not coincide with the outcome of the trade.

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Trading Forex on margin offers good opportunities to receive high profit, and carries a high level of risk. Prior to trading you should make sure you fully understand all the risks involved and take into consideration your level of experience and financial situation.

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  • Tuesday, December 15, 2015
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