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Your Questions About Forex Free Margin The following Question and Answer is brought to you by our Forex Consultant with interaction from members of the Yahoo Answers community.

Steven asks…

what is forex trading status ? i have opened a demo account for EURUSD the status shows that Balance:5152.20 Equity:4729.30 Margin: 278.68 Free Margin :4440.52 Margin level 1682.65% i don’t understand the status please explain me in detail. i am new in forex trading.

admin answers: Margin – money that you have bought your open position. This is cash that is levreged. So if you have leverage 100:1 then 278.68*100= $27868 If EURUSD= 1.3934 then 1 EUR =1.3934 USD 1 forex mini lot = 10000 EUR=13934

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2 forex mini lot = 20000 EUR=27868 if leverage is 100:1 then 27868/100= 278.68 which is your margin Free margin= Equity – used margin 4440.52=4729-278.68 margin level = free margin/used margin to learn how to calculate leverage and margin http://www.forexmarketscience.com/leverage_and_margin.htm

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Your Questions About Forex Free Margin