This is the Official Subreddit of Portfolios Disclaimer: Our trading ideas/suggestions are based on the theory of Technical/Fundamental Analysis mended with personal observations for educational purpose and do not constitute any guaranteed profit or fixed returns. We do not take responsibility for any loss to your accounts. Trading CFDs on margin carries a high level of risk, therefore before deciding to enter the trade, you should carefully consider your risk appetite.
Can you please help me understand how margin trading loss is calculated? Lets say we have this trade : Type: long Leverage: 3 Margin: 1102.25 Open price: 6613.5 Close price: 6540.1 Stop loss: 6457 Fee: 2.88 How much should be the loss and how do you calculate this correctly
Can i trade spreads (limited loss) on margin account with under 2000$?
I just opened a margin account with tw not because of the margin but because i want to trade spreads. I want to deposit about 1000$ and trade NOT on margin, but on a margin account. I read Firna rules and they say that you can trade on margin account if you have deposited 2000$ OR can cover 100% of the leg Can anyone explain further?
Can trading platform be sued for loss due to margin department actions
I recently had a margin call issued for a stock that I was shorting. The call was issued at 5 am in morning. The message I received gave me time till the end of the day to meet the margin requirement by covering my position or adding funds. But instead of waiting for me to do anything, margin department covered my short position at a loss of $6800 before 10 am that very day...what made things worse was the stock fell to near my selling price within an hour of margin department covering my short position. In that scenario, my margin requirements would be met without anyone needing to do anything. Instead due to trigger happy nature of the margin dept, I have a negative balance on my account. So I feel I am being wronged by the trigger happy nature of the margin department. Can I sue them for causing me loss by not honoring deadline they themselves set? They could have at least called me if they though they couldn't wait till the end of day, which they didn't. Can I take this to court? ... or is there any other way I can talk to trading platform to reduce my loss by not crediting all of it to my account and instead take some blunt themselves? Is there another way where I don't have to go to court and also not bear all the loss myself? Thank you. PS: I am aware of the user agreement that allows margin dept to take action, but then what's the point of giving a deadline if you are not going to honor it. What I am really trying to understand is whether there is anything that I can do to convince trading platform to re-access what it did and reduce/negotiate my loss. Given your experience has anyone ever successfully negotiated with trading platforms?
Will I be charged margin interest if I enter into a hedged options trade where my cash could cover maximum loss, but not assignment?
For example, let's say I enter a call credit spread where the max loss is $500, but the assignment of the 100 shares if the trade moves against me is $30000 and I only have 10k in my account. Will I be charged margin interest if the stock moves past the call contract I wrote? Will my brokerage automatically purchase shares using margin and charge me margin interest upon assignment? Or will they purchase the shares and assign it away and I only need the difference of $500 or less to cover it?
How do losses and Profits work in Intra day trading margins?
Hey , I am new to this trading thing , now I know that intraday is risky but still i want someone to explain to me regarding the calculation of loss in margin trading. Say for example I've got 1,000 in my account and I get a margin of 15x , so if I buy shares Worth 15k and end up making a loss if more than 1,000. How is it deducted from my account?? Can someone pleasee explain regarding margins
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Exchange with margin trading but no stop loss. Is this a joke?
Can't even set a stop loss? Is this a joke? What kind of exchange is this?? On binance atleast you can set a stop and they don't even provide margin trading... I mean WTF how are you supposed to trade without a stop...
Margin trading is one of the primary sources of profit for brokerage houses. For the average individual investor, there are few faster ways to lose nearly all of your assets than through large-scale participation in margin trading. A stop loss order automatically executes a market buy or market sell when a specific price is reached. It’s an extremely useful tool for maintaining a predictable level of risk when margin trading. Many crypto traders choose to set stop loss orders 1-2% from the intended direction of their trades. For example, if Bob opens a BTC long at USD6 If amount = 0, it's a trade that opened a margin position (and therefore no profit/loss yet). If amount is >0 (positive), it's a profit from closing all or part of a margin position. If amount is <0 (negative), it's a loss from closing all or part of a margin position. Note: profit/loss amounts do not include fees. 2. Opening & closing fees Margin trading is just another tool. You can use it to make impressive gains and simultaneously risk excessive loss. Trading on margin effectively is best done with a reasonable amount of experience and a strict risk management policy. The investment performs poorly leading to a loss – A loss from margin trading means that the trader’s account has no enough funds to pay back the lender. Brokers place a margin call in such a scenario. Frequently Used Terminologies in Margin trading. Some of the most used terms in margin trading are:
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