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deejay1
10-23-2008, 05:50 PM
im wondering about margin, free margin, and the percentages...can anyone explain what the numbers mean? thanks!

^eagle^
10-23-2008, 10:09 PM
im wondering about margin, free margin, and the percentages...can anyone explain what the numbers mean? thanks!

margin = the absolute minimum the broker will allow your free margin to drop before he closes your trades for you.

free margin= the differnece between the margin and your available balance. your available balnce is your total balnce- the money you have on the board actively trading.

Margin percentage if the ratio between margin and free margin.
free margin/margin

alan
10-24-2008, 07:06 AM
im wondering about margin, free margin, and the percentages...can anyone explain what the numbers mean? thanks!

margin = is collateral that the holder of a position in securities, options, or futures contracts has to deposit to cover the credit risk of his counterparty (most often his broker)