Forex Margin Trading (FX Trading)

“FX” refers to buying and selling (trading) of two different currencies. To be precise, FX stands for “margin Foreign exchange trading” and means foreign exchange margin trading. It is a financial product that deposits margin money with an FX company or a securities company and trades a larger amount of foreign exchange. It refers to transactions that generate profit or loss by buying and selling foreign currencies such as US dollars and euros.

For example, let’s say that the current dollar is 120 yen. To get one dollar, you have to pay 120 yen in Japanese yen to get it. Now, let’s say you get $ 1 by exchanging $ 120 for $ 1. One month later, the exchange rate fluctuated, and the dollar became 121 yen. At this time, if you exchange 1 dollar for Japanese yen, you can get 121 yen. In other words, you got a profit of “1 yen” from the 120 yen you paid one month in advance.

Since it is impossible that the exchange rate does not change in such an exchange rate, profit or loss will occur depending on whether the yen depreciates or strengthens from the moment of buying or selling. In this way, buying and selling currencies between two countries is FX, and it is based on a very simple mechanism.

VirtueForex offers Metatrader 4 (MT4), a Forex industry standard trading platform that is popular among traders worldwide. We also have various apps that can be traded on iPhone, Android and tablets.

Margin call is a warning issued when the margin required for trading (margin maintenance rate) falls below a fixed ratio (margin call ratio). Margin call is a warning that the account is on the verge of being forcibly lost, so we recommend that you make an additional deposit as soon as possible. We have set the margin call ratio to a margin maintenance rate of 120%. If the margin maintenance rate falls below this number, a warning will be issued.

A compulsory loss cut is when the margin maintenance rate falls below 90% (when the effective margin falls below the required margin), and the margin maintenance rate is 90 from the position with the largest valuation loss among the positions held by the customer. It is an automatic payment function that is forcibly settled by market orders until it reaches%. The compulsory loss cut system is to keep the customer’s loss within a certain range, but if a compulsory loss cut occurs due to sudden fluctuations in the exchange rate, all positions will be settled and a larger loss than expected may occur.