Borrowing money to purchase securities is known as "buying on margin". When an investor borrows money from his broker to buy a stock, he must open a margin account with his broker, sign a related agreement and abide by the broker's margin requirements. The loan in the account is collateralized by investor's securities and cash. If the value of the stock drops too much, the investor must deposit more cash in his account, or sell a portion of the stock.


Note also that when we begin storing our trades in a relational database (as described above in the roadmap) we will need to make sure we once again use the correct data-type. PostgreSQL and MySQL support a decimal representation. It is vital that we utilise these data-types when we create our database schema, otherwise we will run into rounding errors that are extremely difficult to diagnose!

Let’s cover this with an example. If you have $1,000 in your trading account and use a leverage of 1:100 you could theoretically open a position size of $100,000. However, by doing so, your entire trading account would be allocated as the required margin for the trade, and even a single price tick against you would lead to a margin call. There would be no free margin to withstand any negative price fluctuation.

Have you always dreamed of financial freedom? Maybe you want to start your own business and need a way to supplement the income it brings in. It doesn’t matter what your goals are – Forex trading may be the solution you have been looking for. This high-reward, high-risk market has plenty of opportunities for the patient, insightful investor. You do not need to spend all day researching and watching the market; currency trading only requires you to dedicate a small portion of each day to it, leaving you with more time to spend following your dreams!


All currency trading is done in pairs. Unlike the stock market, where you can buy or sell a single stock, you have to buy one currency and sell another currency in the forex market. Next, nearly all currencies are priced out to the fourth decimal point. A pip or percentage in point is the smallest increment of trade. One pip typically equals 1/100 of 1 percent.

Just like securities, commodities have required initial and maintenance margins. These are typically set by the individual exchanges as a percentage of the current value of a futures contract, based on the volatility and price of the contract. The initial margin requirement for a futures contract is the amount of money you must put up as collateral to open position on the contract. To be able to buy a futures contract, you must meet the initial margin requirement, which means that you must deposit or already have that amount of money in your account.

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Often, closing one losing position will take the margin level Forex higher than 5%, as it will release the margin of that position, so the total used margin will decrease and consequently the margin level will increase. The system often takes the margin level higher than 5%, by closing the biggest position first. If your other losing positions continue losing and the margin level reaches 5% once more, the system will just close another losing position.
Borrowing money to purchase securities is known as "buying on margin". When an investor borrows money from his broker to buy a stock, he must open a margin account with his broker, sign a related agreement and abide by the broker's margin requirements. The loan in the account is collateralized by investor's securities and cash. If the value of the stock drops too much, the investor must deposit more cash in his account, or sell a portion of the stock.
Simply download the latest version from the Software page and after installation follow the initial wizard or click on the help/start trial menu. Please note that the software periodically communicates with the license servers to validate your trial. After the trial period you can use the software in read only mode which means you cannot modify your TradingDiary Pro database anymore.
I post this to let you know, as the title mentions it, that I made a trading diary, with google documents tool. This a generic spreadsheet which allows any trader to manage his trading (his risk, his pnl, his opened position, the orders...) with a trding diary. Every trader,should have one, and I mad mine with google docs. At least you must have an account to acces this spreadsheet. 

Let’s cover this with an example. If you have $1,000 in your trading account and use a leverage of 1:100 you could theoretically open a position size of $100,000. However, by doing so, your entire trading account would be allocated as the required margin for the trade, and even a single price tick against you would lead to a margin call. There would be no free margin to withstand any negative price fluctuation.
Multiple Broker/FIX Integration - At the moment we are strongly coupled to the OANDA broker. As I said this is simply because I came across their API and found it to be a modern offering. There are plenty of other brokers out there, many of which support the FIX protocol. Adding a FIX capability would increase the number of brokers that could be used with the system.
Free Margin – Your free margin represents your total equity minus any margin used for leveraged trades. For example, if your equity is $1,000 and your used margin is $100, your free margin would amount to $900. Following your free margin is extremely important, as it is used to withstand negative price fluctuations from your open trades and to open new leveraged trades. It’s important to understand that your free margin increases with profitable positions, but decreases with your losing positions. Once the free margin drops to zero or below, your broker will activate the so-called margin call and close all your open positions at the current market rate, in order to prevent your equity from falling below the required margin.
Let's presume that the market keeps on going against you. In this case, the broker will simply have no choice but to shut down all your losing positions. This limit is referred to as a stop out level. For example, when the stop out level is established at 5% by a broker, the trading platform will start closing your losing positions automatically if your margin level reaches 5%. It is important to note that it starts closing from the biggest losing position.
The market values/prices used to compute the equity or margin requirement in an Interactive account may differ from the price disseminated by exchanges or other market data sources, and may represent Interactive's valuation of the product. Among other things, Interactive may calculate its own index values, Exchange Traded Fund values or derivatives values, and Interactive may value securities or futures or other investment products based on bid price, offer price, last sale price, midpoint or using some other method. Interactive may use a valuation methodology that is more conservative than the marketplace as a whole.
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