Type Of Forex Margin - Forex Margin said to be funds that must be paid by the investor, but the amount of the deposit is different for each type of margin. Here we will discuss one by one of the kinds of margins.
Initial margin / original margin,
In the Indonesian language Initial margin also called initial margin, which is the amount of money paid by the investor at the time of account opening.
The amount corresponding initial agreement made between investors and futures broker, usually expressed as a percentage of the contract value. In the commodity futures typically specified initial margin ranged 5-10% of the contract value. The amount of margin varies according to the value of the contract, time, and price fluctuations that occur. In forex trading set initial margin of 1% of the contract value. So less than initial margin on futures commodity trading. Since the forex market value of the contract there are two, namely large size USD100, 000 and the small size 10.000 then the value of the initial margin to trade forex is USD1, 000 (U.S. $ 10,000,000) or $ 100 ($ 1,000,000), if the exchange rate is set Rp 10,000 per U.S. dollar (U.S.).
Variation margin,
Terms used in the Indonesian language is interrupted margin, which is an additional margin paid because the amount of subsequent margin has been under massive initial margin, as a result of price movements as opposed to the originally estimated.
Maintenaince margin,
In the Indonesian language term used is the minimum margin. Margin is the amount of value that should be kept or maintained by the investor in the transaction. Generally, the minimum margin is set at about 75% -80% of the initial margin.
Margin call,
This type is similar to the margin between, the amount of funds that must be paid back by the investor. Only in margin call deposit fund must be made if funds are already under maintenaince outstanding margin, not initial margin. If the investor gets a margin call means that investors have to add funds to the initial margin level, if not done, the position will be closed by the broker.
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