Options involve risk and are not suitable for all investors. For more information read the "Characteristics and Risks of Standardized Options". For a copy call Interactive Brokers' Client Services on 312-542-6901. Before trading, clients must read the relevant risk disclosure statements on our Warnings and Disclosures page - http://www.interactivebrokers.com/disclosures. Trading on margin is only for sophisticated investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see http://www.interactivebrokers.com/interest. Security futures involve a high degree of risk and are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, read the Security Futures Risk Disclosure Statement. For a copy visit http://www.interactivebrokers.com/disclosures. Structured products and fixed income products such as bonds are complex products that are more risky and are not suitable for all investors. Before trading, please read the Risk warning and Disclosure Statement at http://www.interactivebrokers.com/disclosures. There is a substantial risk of loss in foreign exchange trading. The settlement date of foreign exchange trades can vary due to time zone differences and bank holidays. When trading across foreign exchange markets, this may necessitate borrowing funds to settle foreign exchange trades. The interest rate on borrowed funds must be considered when computing the cost of trades across multiple markets.


The Forex market is one of a number of financial markets that offer trading on margin through a Forex margin account. Many traders are attracted to the Forex market because of the relatively high leverage that Forex brokers offer to new traders. But, what are leverage and margin, how are they related, and what do you need to know when trading on margin? This and more will be covered in the following lines.

If you believe that a currency pair such as the Australian dollar will rise against the US Dollar you can place a buy trade on AUD/USD. If the prices rises, you will make a profit for every point that AUD appreciates against the USD. If the market falls, then you will make a loss for every point the price moves against you. Our trading platform tells you in real-time how much profit or loss you are making.


Each time you open a new trade, calculate how much free margin you would need to use if the trade drops to its stop loss level. In other words, if your free margin is currently $500, but your potential losses of a trade are $700 (if the trade hits stop loss), you could be in trouble. In these situations, either close some of your open positions, or decrease your position sizes in order to free up additional free margin.
The "philosophy" of the forex trading system, as with the rest of the QuantStart site, is to try and mimic real-life trading as much as possible in our backtesting. This means including the details that are often excluded from more "research oriented" backtesting situations. Latency, server outages, automation, monitoring, realistic transaction costs will all be included within the models to give us a good idea of how well a strategy is likely to perform.
If traders are positive on the prospects for the Yen, they would expect the number on the right to go down – i.e. the Yen would be getting stronger against the Dollar. Traders would be buying less Yen with a Dollar as the Yen got stronger. Similarly, if the Yen was expected to weaken, forex traders would expect the Yen number to go up, reflecting the fact that the dollar could buy more yen.
What’s new in version 3.2? New features A vertical view of the instruments panel has been added called Charts view Fancy new splash screen 🙂 Import modules Degiro importer Westpac importer Light Speed importer Interactive Brokers importer update due to cash transaction format change Bug fixes Fixed Gantt chart save issue Fixed layout restore problems […]
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.
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.
Free margin in Forex is the amount of money that is not involved in any trade. You can use it to take more positions, however, that isn't all - as the free margin is the difference between equity and margin. If your open positions make you money, the more they achieve profit, the greater the equity you will have, so you will have more free margin as a result. There may be a situation when you have some open positions and also some pending orders simultaneously.
In order to understand Forex trading better, one should know all they can about margins. Forex margin level is another important concept that you need to understand. The Forex margin level is the percentage value based on the amount of accessible usable margin versus used margin. In other words, it is the ratio of equity to margin, and is calculated in the following way:

In particular I would like to make the system a lot faster, since it will allow parameter searches to be carried out in a reasonable time. While Python is a great tool, it's one drawback is that it is relatively slow when compared to C/C++. Hence I will be carrying out a lot of profiling to try and improve the execution speed of both the backtest and the performance calculations.
Brokers use margin levels in an attempt to detect whether FX traders can take any new positions or not. Different brokers have varying limits for the margin level, but most will set this limit at 100%. This limit is called a margin call level. Technically, a 100% margin call level means that when your account margin level reaches 100%, you can still close your positions, but you cannot take any new positions.
Margins are a hotly debated topic. Some traders argue that too much margin is very dangerous, however it all depends on trading style and the amount of trading experience one has. If you are going to trade on a margin account, it is important that you know what your broker's policies are on margin accounts, and that you fully understand and are comfortable with the risks involved. Be careful to avoid a Forex margin call.

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.

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