Banking service chronicle
Banking service chronicle Monthly Magazine by bsc academy-subscribe Your account balance would be $220, because you paid 3 pips or $ 30 for this trade. If you would close this trade immediately, you have to sell it at 112.10 (the bid price) , for a loss of $ 30. In fact you could not get executed on this trade, as the brokers trading platform would reject your order, for the reason of having insufficient funds in your account). So, your account balance has to be minimum $280. $250 for margin and $30 for the trade. BUT....IF, after you have initiated the trade to buy USD/JPY at 112.13, and the USD/JPY falls the next second 1 pip ( approx. $8), your position would be closed automatically, because of margin deficit. I will explain later about having an adequate account size to trade the Forex Market. Currencies are always traded in pairs in the FOREX. The pairs have a unique notation that expresses what currencies are being traded. The symbol for a currency pair will always be in the form ABC/DEF. ABC/DEF is not a real currency pair, it is an example of a symbol for a currency pair. In this example ABC is the symbol for one countries currency and DEF is the symbol for another countries currency. Some of the most common symbols used in Forex are: USD - The US Dollar EUR - The currency of the European Union EURO GBP - The British Pound or cable JPY - The Japanese Yen CHF - The Swiss Franc AUD - The Australian Dolla CAD - The Canadian Dollar There are symbols for other currencies as well, but these are the most commonly traded ones. A currency can never be traded by itself. So you can not ever trade the USD by itself. You always need to BUY one currency and SELL another currency to make a trade possible banking service chronicle monthly magazine.
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