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