What Is Marginal Trading?

[ali555]

Marginal trading is a term used for trading with borrowed capital. FOREX investments can be made without actually having the money. All an investor needs to do is borrow the money for a certain currency. The investor wants to choose a currency that will increase in value quite rapidly. Once the currency increases, the investor pays back the money he or she borrowed and makes sheer profit. This is a high-risk investment, but the rewards are great (as with most high risk investments).

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[Guest sajminsoniya]

Marginal trading is a buying stocks without having entire money to do it.

[papia09]

margin level is the percent amount of the capital that you have in the account that has been used in the trade and the rest is the free and available for the trades that you may wanna make

[Guest gaban]

the guarantee required to execute trade with the help of leverage. For example, if the leverage is 1:100 and the volume of order is 10 000 USD, the margin is 100 USD.

[CahCuncun]

I have been trading for last 2 years but honestly i have never heard of such thing as Marginal trading. If someone can guide me further as what exactly it is as i am confused. If we can trade on the borrowed money than what happens if we lose it instead of profits?

I think what he means is leverage. In forex trading, we will get leverage from broker. We can use it to start trading with small amount. But traders who can not use leverage properly, will not get the advantages of leverage. I just use leverage 1:500 from TenkoFx.