TradeKing Forex is a platform that provides traders with the opportunity to buy and sell currencies in the foreign exchange market. It is important to understand the concept of margin when trading on this platform. Margin is the amount of money that is required to open a position in the market. It is the collateral that a trader must provide to the broker to cover any potential losses that may occur during the trade. This article will explain how to adjust margin in TradeKing Forex.
The first step in adjusting margin in TradeKing Forex is to understand the concept of leverage. Leverage is the ratio of the amount of money that a trader is able to control in the market, to the amount of money that they have in their account. For example, if a trader has $1000 in their account, and they have a leverage of 50:1, they are able to control $50,000 in the market. This means that they can make larger trades with a smaller amount of money.
To adjust margin in TradeKing Forex, a trader must first log in to their account. Once logged in, the trader must navigate to the “Account” tab, and select “Margin and Options”. This will bring up a screen that displays the trader’s current margin requirements.
The trader can then adjust their margin requirements by selecting the “Edit” button next to the margin requirement they wish to change. This will bring up a screen that allows the trader to adjust their leverage ratio. The trader can then enter the new leverage ratio that they wish to use and click “Save”. The new margin requirement will be updated and the trader can continue to trade on the platform.
It is important to note that adjusting margin in TradeKing Forex can have significant consequences. Increasing the leverage ratio can allow a trader to make larger trades with a smaller amount of money, but it also increases the risk of incurring losses. Traders must be aware of the potential risks of trading with high leverage and adjust their margin requirements accordingly.
It is also important to understand the concept of margin calls. A margin call occurs when a trader’s account balance falls below the required margin level. This can happen if the trader incurs losses on their trades. If a margin call occurs, the trader must deposit additional funds into their account to meet the margin requirement, or their positions may be liquidated by the broker.
In conclusion, adjusting margin in TradeKing Forex is an important aspect of trading on the platform. Traders must understand the concept of leverage and the risks associated with trading with high leverage. They must also be aware of the potential consequences of margin calls and adjust their margin requirements accordingly. With a solid understanding of these concepts, traders can effectively manage their margin requirements and make informed trading decisions on the platform.