What is a Indices Trading Margin Account?
A Indices Trading Margin trading account is an account that allows stock indices traders to control a large amount of indices trade transaction using little of their own capital while borrowing the rest from their stock indices trading broker.
What is a Indices Trading Margin Account?
Obtaining this margin trading account will enable you as a indices trader to borrow money from your indices broker to trade indices with.
The amount of borrowing power your indices trading account gives you what is called " indices trading leverage", and is usually expressed as a ratio - a ratio of 100:1 means you can control resources worth 100 times your deposit -indices trading leverage 100:1 means you can borrow 100 dollars from your indices broker for every $1 dollar in your stock indices trading account.
What this means in Indices Trading terms is that with 1% margin in your indices trading account you can control one standard lot or 1 contract worth $100,000 with a $1,000 deposit.
However, Trading this indices trading account increases both potential for profits as well as losses. In Indices Trading you can never lose more than you invest, losses are limited to your deposits and usually brokers will close a transaction that extends beyond your deposit amount by executing a margin call. Indices traders must therefore try to keep their margin level above that required. By using indices trading money management rules and keeping your used indices trading leverage below 5:1.
To Learn and Know More about Indices Trading Leverage and Margin - How to Read the Topics Below:
Indices Trading Leverage and Margin Explained
Regulated Indices Broker Information: Read About Regulated Indices Broker Review
Takes 5 Minutes to Open an Account, Open an Account Early: Open Indices Account
