The possibility of making profit is inextricably interwoven with the risk of losses. Initiation of transactions with non-deliverable OTC financial instruments has a high degree of risk and can lead to losses up to the whole loss of deposited margin. Risks warning

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Margin

Many novice investors are wondering what the Forex margin is. The concept of margin in the foreign exchange market is used in a slightly different meaning than in the economy as a whole. Margin is a clients deposit, a kind of pledge that he leaves the Forex company, taking part in a margin transaction.

The principle of exchange Investment is that a client, having insignificant capital, can use margin credit to open positions that are several orders of magnitude higher than his funds. The leverage (the ratio of the loan to the margin pledge) can be both 1:50 and 1: 500. This significantly increases the room for manoeuvre for the client, allowing him to enter into transactions for large amounts.