Trade Bitcoin Trading

Bitcoin Leverage Example and Margin Examples and Example

Margin required : It's amount of money your broker requires from you as a trader to open a position. It is expressed in percentages.

Equity : It is total amount of capital you've got in your account.

Used margin : amount of money on your account that has already been used up when opening a bitcoin trading contract, this contract is the one that's displayed and shown in open trades. As a trader you can not use this amount of money after ==22==openingregisteringregistering--and--opening a trade because you have already used it and it ==22==isn'tis--not available to you.

In other words, because your online broker has opened up a position for you using capital ==22==you'veyou--have borrowed, you must keep this usable margin for your account as a collateral to allow you the trader to continue using this bitcoin Leverage Example he has given you.

Free margin : amount in your account which you as a btc/usd trader can use to open new positions. This is the amount of money on your account which has't yet been bitcoin Leverage Examples because you've not yet opened a trade position with this money - this amount is also very important for you as a investor and trader because it enables you as a trader to continue holding your open trade positions as it will be explained below.

However, if you over use bitcoin Trade Leverage Example, this free margin will drop below a certain % at which your broker will be forced to close all of your trade positions mechanically, leaving you with a big loss. The btcusd broker at this point automatically closes all your open position position because if your trade transactions are left open broker would lose the money you'll have borrowed from them.

This is why you should always ensure you've got a lot of free margin. In order to do this never trade more than 5 % of your account, in fact two % is advised.

Difference Between Bitcoin Leverage Example Set by the Broker and Used Bitcoin Leverage Examples

If the set bitcoin Trade Leverage Example is 5: 1, it means you can borrow up to 5 dollars for every dollar you have but you do not have to borrow all the 5 dollars for every dollar you have you can decide to borrow 2:1 or 3:1. In this case even though the option set 5:1 your used bitcoin Trade Leverage Example will be the 2:1 or 3:1 that you've borrowed to make a trade transaction.

Example:

You have $1000 dollars (Equity)

Set 5:1

Bitcoin Leverage Example Used = Amount used /Equity

If you buy trades equal to 2,000 dollars you'll have used

= 2,000/1000

= 2:1

If you buy trades equal to 3,000 dollars you'll have used

= 3,000/1000

= 3:1

Study More Courses:

Forex Seminar Gala

Forex Seminar

Bitcoin Broker