required margin indicated as a percentage. That is, it allows you to specify the actual amount of your trade, for example, 1,500 of usdjpy or 2,500 of gbpusd. Learn What Works and What Doesnt In the Forex in My Free Newsletter Packed with Actionable Tips and Strategies To Get Your Trading Profitable. Another example: Say we wanted to sell 50,000 units of the USD/ JPY and we are using a Euro platform and our broker was offering us 400:1 leverage.25 required margin. A disciplined FX trader will always enter a trade with a stop loss and read the risk exposure in pips to determine the feasibility of the trade.
A position in usdjpy of 50,000 would have a pip value of 50,000 *.01 500 yen, then dividing by the exchange rate, say 112.50, would give.4 of pip value for the position. The minimum security (margin) for each lot will vary from broker to broker. The currency on the left of the FX pair. For a currency pair"d in terms of US dollars such as eurusd the equation would be; Stoploss(pips) (Margin * Percentage) Lot Size. To gain access to these funds they ask us to put down a good faith deposit of say 500 which they will hold but not necessarily keep.