Using the Margin Analysis to Trade Currencies

As explained in the free education section, the leverage in the forex market is a lot greater than in stocks because of the low margin requirements. This is one of the advantages of trading currencies. With only a 1% margin requirement (100 to 1 leverage) our traders have a lot more flexibility in implementing different trading strategies.

The trading software has a margin analysis window that provides FX traders with real time information on their accounts. A list of the information included in the margin window is provided below.

Account Balance: This is the sum of all deposits, interest income, realized gains less all withdrawals, realized losses, and incidental fees. The Account Balance is equal to the posted margin plus the excess margin deposit.

Realized Gain/Loss: The net (sum of all gains and losses) profit and loss (P&L) on forex positions that have been closed out on the current trading day. At the end of the business day (1700 ET), all realized Gains and Losses are posted to the trader's account balance.

Unrealized Gain/Loss: The net profit and loss (P&L) of all open foreign exchange positions, calculated at the current current currency rates offered. This amount changes constantly as the prices fluctuate.

Margin Balance: Represents Account Balance plus the sum total of current realized and unrealized gains/losses from closed and open currency positions respectively.

Total Available Position: The total value in U.S. Dollars in positions, that your margin balance will allow you to open. At 1% margin, this represent 100 times your current margin balance.

Open Position: The total value in U.S. Dollars of all open forex positions.

Max Deal Available: The amount of buying power available for new transactions. This is equal to the Total Available Positions less the gross Open Positions.