Practice of trade

Essence of work at the FOREX market is accomplishing operations on the purchase and sale of currency contracts with the purpose of receipt arrived due to the change in time of courses of currencies (which is named "spread"). Trade by currency contracts on FOREX is based on principles of "marginal trade" and is carried out through the organizers of market (Market-Makers), which sell and buy (quote) currencies at prices reflecting the market condition at the present period of time. Essence of "margin trade" is taken to the following: market (investor) participant, placing the mortgage money facilities on the deposit of broker, gets possibility to manage the process having a special-purpose credit from broker ("credit shoulder", or it is called also "leveridge"), selected under this mortgage, which is more in ten or even two hundred times of the sum inlaid by the participant. However, to bear losses excelling the sum inlaid by you, the condition of work is not allowed with a broker. At margin trade every operation necessarily has two stages: purchase (sale) of currency at one price, and then obligatory sale (purchase) of it by other (or on that) price. The first action is named "opening of position", and second – "closing of position". At opening of position of the real delivery currency place does not take, and a participant opening position brings in an insurance deposit which serves as the guarantee to indemnification of possible losses. After closing of position an insurance deposit comes back, and there is the calculation of income or losses which are usually equivalent to the size of insurance deposit. Thus deposit often in one hundred times less that sum which a participant gets for the use in this auction operation.