Sydney Financial - Pay Off Your Home Faster Binaries mit DSL Speed downloaden!

Saturday, September 1, 2007

Basic Terms Associated With Trade Account

A deal is the carrying out of two trade transactions when a currency is bought (sold) and then the reverse conversion is performed.

A balance is the total at the client's account after the last deal is closed.

A profit is the current income at the open positions.

A swap is the payment for the transfer of the current position to the next day.

Equity = Balance + Profit + Swap

Margin is the required collateral for open positions.

Free is a free margin, funds unused in the collateral for the open positions. It is calculated as Equity - Margin.

Margin Level (ML) is an indicator describing the account status. It is calculated as Equity/Margin

Margin Call is an account status when all the open positions are forcedly closed by the companies at the current rates. It usually occurs when the Margin Level is lower than 20%.

No comments: