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Home » Trading

Forex trading and Margins?

Submitted by on September 8, 2010 – 9:58 amNo Replies


A web user asks, I just read in an ebook that when you use a margin to borrow a position on an FX position that you cant lose more then your initial margin. this doesn’t make sence to me.

As a theory, if I invest $1000 margin to a $100,000 position. and lets say it goes down to half, $50,000. wouldn’t i lose my margin and owe 49,000?

What i read says that i can only lose the margin. Tell me if its right.

Can you help them out? Post your advice!

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