Sunday, February 16, 2014

5 minute Learning Quantity, Margin and Leverage

have to hold the price movement.

If you use the small leverage (1: 50 pm, 1: 30 am, 1: 20), the greater the collateral/margin you have to pay and you only have a little leftover capital to withstand price movements (unless of course your capital). 

Know leverage before you start trading. Leverage is very important so that you can calculate how much capital do you have to prepare. Preferably, use a maximum of 10% of your capital as margin.



an amount of money from the rest of deposit last to recoup. And so on until your deposit money no longer left or until it reaches the limit specified broker.

Then how we should give reassurance to the broker? How can we use to hold the price movements? Well, here is the concept of the LEVERAGE effect.

by knowing how to leverage given your broker, then you can know how to give a guarantee to your broker. Here's the short explanation;

Leverage 1: 1 same as cash collateral was 100% of the contract value. 

1: 50 Leverage is equal to 2% of the value of the collateral contract.

1: 100 Leverage collateral equal to 1% of the value of his contract.

Leverage 1: 200 with the collateral was 0.50% of the contract value. 

1: 400 Leverage is equal to 0.25% of the value of the collateral contract.

Leverage 1: 500 is equivalent to 0.20% of the value of the collateral contract. 



well, here is an example of count 
;
= collateral/Margin (leverage x quantity) x $ 1 

Note: the 
(the original formula of leverage x quantity x 100000 x current price, but I simply take that easy to understand hehe ..:D, furthermore to Streamster and pair EUR/USD only) 

so, if your contract value of 10000 quantity, then you have to give a guarantee of 
;

1: 100 Leverage (1% x 10000) x $ 1 = $ 100 (100 Dollar) 

If Leveragenya 
? 1: 200(0.50% x 10000) x $ 1 = $ 50 (50 Dollar) 

If Leveragenya 1: 50? 
(2% x 10000) x $ 1 = $ 200 (200 Dollar) 

well, now you can calculate it yourself instead? You can leverage value or quantity merubah-rubah-its up to you, just use the formula above.



well, once you know how much it must pay the collateral, and how you should prepare your capital to withstand price movement? 

actually it depends on each person's trading style. Each man had his own trading style and risk management have its own trading.

But if I was, that I make only a margin of 10% of the total capital. In short, from your capital the 10% and 90% guarantee to hold prices.

so if the collateral was just $ 100, then we recommend that you rest your capital there is still $ 900. So the total money you deposited at the broker later for $ 1000.

If you deposit $ 500 with the money, we recommend you use the $ 50 to $ 450 and margin to withstand price (10% x $ 500 = $ 50). With a margin of $ 50, you could use quantity 5000 in Streamster (his only leverage Streamster 1: 100). With quantity 5000, the benefits will be worth $ 0.5 for each pips.

Then where is how to set the margins? The Margin is not set through the menu, it will be automatically calculated by the system when you choose the quantity. The following correlation between quantity and margin to Leverage of 1: 100 and 1: 200 Leverage.

QUANTITY | ($) MARGIN (1: 100) | ($) MARGIN (1: 200) 


0,005 10 0.01 0.1 0.05 

100 1 0.5 

1000 

10 5 50-100 

10000 100000 1000 500 




Conclusions the greater leverage that you use (1: 100, 1: 200, 1: 400, 1: 500), the less collateral/margin you have to setorkan and the more the rest of the funds you have to hold the price movement.

If you use the small leverage (1: 50 pm, 1: 30 am, 1: 20), the greater the collateral/margin you have to pay and you only have a little leftover capital to withstand price movements (unless of course your capital). 

Know leverage before you start trading. Leverage is very important so that you can calculate how much capital do you have to prepare. Preferably, use a maximum of 10% of your capital as margin.

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