Tekmnd

Hi Bob

The rules/laws regarding forex changed just a couple of weeks ago. If your account is in the US, you now have to close out positions using a different method.

There is info on it here-
FXCM bring in OCO orders
(Watch the video in the first post in the thread.

and here-
FXCM

Cheers
Tek

Thank

 

Unregistered

Hi,

Im new to forex and this is a great site to start with.

I have a questin that when I open a position of 100 there I have 750.00 in Usd Mr instead of 1000. Did I do somthing wrong some where??

Tekmnd

Hi Unreg

The rules for leverage have changed recently.
If I understand what you are asking correctly, the amount of your position size will not be the same amount as the used margin. I think what happened is that you bought a single lot of currency (which is $100K worth of currency) and it used $250 of margin (it placed $250 of your account on hold to cover any losses).

I also have a video margin and leverage that might help clear things up:

UNDERSTANDING MARGIN AND LEVERAGE - FOREX BASICS

Cheers
Tek

__________________

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Unregistered

Ok thanks Tek,

I get it now and thanks for the video link, it was really helpfull to understand the comcept leverage, i got a bit confused before.

thanks

Unregistered

Hello

When I open my demo account and I put my user name and password a small widow opens which states ORA-2 and the account dosnt open. Its only been 5 days since Iv downloaded this software. And my internet connection is also working fine. Is it a temporary problem or is it somthing else?

Thanks

Tekmnd

Hi Unreg

The platforms are done a lot on the weekends when trading is closed. They do upgrades then.

Cheers
Tek

__________________

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karthick

hi David, I am very new to forex trading. i subscribed to the FXCM demo account.my equity is $5000. i sold 5 lot EUR/USD at 1.27081, the margin deducted from equity was $21.50, then i sold 5 lot GBP/USD at 1.5531. the margin deducted was $18.5.

1.how MMR is calculated?

2. with 400:1 leverage, for 5 lots of EUR/USD i calculated margin as below
1.27080*5*1000(1k per lot) = $6354
MMR = 6354*0.25%(400:1) = $15.885

but MMR deducted was $21.50, how?

3. in the simple dealing rate screen, there is one pip cost which states EUR/USD
as 0.10. what is this pip cost. is it pip cost per lot.
then $15.885 + .10*5(lot) = $16.385, i am no where near the MMR of $21.50.
how they arrived at 21.50 as MMR

4. when i sold 5k GBP/USD(5 lot), the MMR deducted was $18.50
GBP/USD sold at 1.5531, EUR/USD sold at 1.2087
cross rate of GBP/USD is more than EUR/USD but MMR(margin) deducted for
EUR deal = $21.50
GBP deal = $18.50
why margin for GBP is less than EUR?

5. how FXCM is allowing me to sell without buying.
i.e how am i able to short without holding or buying currencies.
if it is short sale, then do i need to square off the same day?
if i am allowed to short, then how long can i keep the position open without
squaring off?

Thank

 

Tekmnd

Hi Karthick


Margin isn't deducted from your account. Rather, that is the amount that is 'placed on hold.' You don't pay margin.
Your only cost in forex is the spread (the difference between the bid and the ask price).
Here is a video on understanding margin and leverage-
YouTube - UNDERSTANDING MARGIN AND LEVERAGE - FOREX BASICS

Also, the rules on margin requirements (how much of your account is placed on hold) has changed since Dave made that video.

Here is a video on short selling-
YouTube - SHORT SELLING - FOREX BASICS

Cheers
Tek

__________________

Thank

 

karthick

Tekmnd,

Thanks tek, the explanation in the video have cleared my doubts.

but is the margin requirement different for different currencies?
for. e.g they deduct $2.5 per lot for USD/CHF or USD/CAD
but $4.5 per lot for GBP/USD, is it due to cross currency(indirect quote)
1000*1.5501 = 15501 *.25% = $3.87, but the margin deducted was $4.5. why?

Thank

 

karthick

thanks a lot tek

Thank