Development of margin trading has become very popular for trading Forex. In many small and medium investors have access to a global currency market, with transaction amounts to $ 10,000, with the margin trading system and use the lever. A company dealing provides customers a credit, which is several times more than the deposit. The amount of collateral (margin) is created by the bank to handle cases where the customer deposits are located. The mechanism is quite simple. For a mass standard for the currency market (100,000 euros) at a price 1.23 EUR / USD, it is necessary to be assured that 1230 euros.
The amount of the marginal position of the speculator medium is comparable to a situation of an investor is very important. Although it is difficult to assess the proportion of business leverage in the total turnover, it is clear that their impact on market conditions is very significant.Work in high-risk markets require that the risk management system that allows automatic tracking of all client positions and the exclusion of losses greater than their equity. Creation of online monitoring system that performs all the positions of customers who can reach tens of thousands of large operators is a very complicated task. Its solution requires a highly professional, information technology, software and finance.
It is obvious that nothing, even large, the company has adequate capital, deposit and settlement, the technologies developed and effective risk management at the same time. Meanwhile, the absence of one of the parameters listed makes the transaction much more risky for customers and brokers. Investment banks, which should start more stringent requirements, have better starting positions for the operations of leverage. As for small businesses, its flexibility, which is often ignored by larger competitors, allows them to maintain a niche in the brokerage market.