published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC. In simple words, he is required to have 2,000 in his/her account to trade every standard fx contract. Also found in: Thesaurus, Medical, Financial, Acronyms, Encyclopedia, Wikipedia. Lets cite an example to understand the concept properly. Forex margin definition, this is the difference between a selling price of a product or any given service and its cost of production. The pricing of money occurs on the foreign exchange market, also known as forex. If yes then scroll down and go through this post as you will get to know about forex margin definition and much more here. When it is about margin, most worried about margin call which is one of the most important aspects of trading.
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In forex, crosses are defined as currency pairs that do not have the USD as part of the pairing. In terms of investing, margin definition in forex can be explained as the practice of buying an asset where the buyer only has to pay a percentage of the asset value and lend the rest either from a bank or a broker. Another point to note is that there was never enough money being sold at the auctions, so people resorted to other outlets where they could buy the forex they needed. Link to this page. British World English forex abbreviation, foreign exchange.
The content of this article reflects the authors opinion and does not necessarily reflect the official position of LiteForex. Others had imported fuel in very large quantities in anticipation of price increases, whilst forex was unprocedurally externalised. Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content. In this case, you also have to pay 2,000, the rest you can easily occupy. Related to forex: Forex Trading forex (frks translations forex freks, n fin ) divisas fpl, want to thank TFD for its existence? A margin call is so effective that it forces the traders to square the position or to add more cash to his account.