Transactions in currencies on Forex admit her as a real delivery, usually on the next working day for the transaction, with and without the use of margin trading.

Transactions in the foreign exchange markets are fixed amounts (lots), the minimum of which is 100 000 dollars. Owners of smaller capital to trade using the insurance deposit is called margin (margin trade) or leverage (leverage trade) trade.

Meaning of margin trading is that trading in Forex can be without resorting to the real money supply, which excludes the cost of their movement, and allows bidders with smaller accounts to make transactions with any currency. This procedure significantly accelerates the implementation of transactions and increasing the amount of potential profit in any direction

At the conclusion of the transaction (open position) the supply of currency, as such, does not happen, but the trader involved in the bidding, making the insured amount (deposit), which is providing credit to the trader for the transaction received from the dealer. When closing a position the loan is automatically revoked and the deposit together with the obtained gains or losses are usually commensurate with the size of the deposit is returned trader. Credit, which the client receives from your dealer, also called leverage.

In contrast, deals with the supply or exchange of real rates, margin trading is necessary to have two operations: the purchase or sale of currency at a price - 1 and the sale or purchase it at a price - 2. In the above process is what is called, respectively, the opening and closing positions.

Companies providing services for margin trading are protected from losses by strict rules in force in this area. The client of such company may incur losses that exceed the size of its deposit. To this end, the company constantly monitors the status of all open positions of the client. If the size of this loss becomes equal to deposit client's position is immediately closed with a loss and the customer loses the right to participate in the auction to replenish its deposit a corresponding amount.

Clearly, leverage allows you to not only significantly increase the potential profit, but, equally, and potential losses.To open a position, you must specify the currency type of transaction (purchase or sale) and the amount of the transaction (lot size).

Lot has a fixed size, equal to the minimum amount of the transaction. Trading can only be a whole number of lots. The size of the transaction taking into account the leverage can not exceed the amount of your insurance account (deposit).

The value of lots in the futures and spot markets have the same size and are uniform and fixed for all traders. The size of these lots determines the amount of the contract.