What is the margin used and also what is the margin available in Forex used

What is the margin used and also what is the margin available in Forex used margin and usable margin

We start our third lesson "3" from Dors Free Forex Education Course on the Forex Kokash website and complete the forex lesson in Forex

We take this example

Suppose the owner's head is $ 2000

The leverage in your account is 1: 100

I bought a EUR / USD 100.000 contract

The margin used to open this contract is used margin: is the total contract size / leverage value

Which equals 100.000 contract size / 100 fourth financial value = 1000 USD

$ 1000 is the margin used and is blocked from your account in exchange for trading with a contract value of $ 1000

The remaining $ 1000 is left in your account, which is called the available margin

The margin available is = your total account balance $ 2000 - the margin used is $ 1,000 in our example = $ 1000

Also a very important point

The margin available is the maximum amount that can be lost in your account

Suppose you entered the EURUSD deal based on your technical analysis expectations that the price will increase 100 pips

The point value was $ 1

The price has actually increased 100 pips here and you have earned $ 100 and you can close the deal as a winner

The deal will be closed and your balance of $ 2100 will be $ 2000 your balance + $ 100 your profit

$ 1000 Reserved Amount Reserved Margin + 1000 Margin Value + $ 100 Total Profit in the transaction to total Ras Maalik = $ 2100

Suppose the opposite happened and the price was 50 dollars short and decided to close the deal because you expect it will price more

The deal will close and your balance will be $ 1950

$ 1000 Reserved Value Reserved Margin + 950 The value of the margin available from which you deducted $ 50 is your loss in the transaction to become the total capital of the owner = 1950

Here you know that the margin available is the maximum limit you can lose in your account

Ok, what if you lose more than $ 1000? What will happen?

Here we move on to our fourth lesson, Margin Cool