Margin trading
CFD's, futures and Forex are traded against margin which means that you only pay a part of the capital at the time of the order. Therefore you are able to have positions that are several times bigger than your own available capital if you want to. The available margin consists of the money on the trading account, added or subtracted by the unrealized profit or loss of the open positions. This so called leverage makes it possible to make big profits / losses compared to your own capital tied to the positions.
The margin available to you changes with the market price moves. If the price moves in favour of your position, the available margin grows. Conversely, if price moves against your position, the available margin becomes smaller. It is important that you always have enough margin to cover your positions at all times. In case your available margin falls below the total margin requirement of the open positions, all the positions will be closed automatically at market prices (so called "margin call").
A list of margin requirments is available here.
Example. Account starting balance 10 000 EUR. Buy 1000 Nokia CFD's at 10.00.
| Account | Nokia-CFD's | Unrealized | Value of | 20 % margin | Available | |
| balance | price | profit / loss | position | requirement | margin | |
| 10,000.00 | 8.50 | -1,500.00 | 8,500.00 | 1,700.00 | 6,800.00 | |
| 10,000.00 | 9.00 | -1,000.00 | 9,000.00 | 1,800.00 | 7,200.00 | |
| 10,000.00 | 9.50 | -500.00 | 9,500.00 | 1,900.00 | 7,600.00 | |
| 10,000.00 | 10.00 | 0.00 | 10,000.00 | 2,000.00 | 8,000.00 | |
| 10,000.00 | 10.50 | 500.00 | 10,500.00 | 2,100.00 | 8,400.00 | |
| 10,000.00 | 11.00 | 1,000.00 | 11,000.00 | 2,200.00 | 8,800.00 | |
| 10,000.00 | 11.50 | 1,500.00 | 11,500.00 | 2,300.00 | 9,200.00 | |
| 10,000.00 | 12.00 | 2,000.00 | 12,000.00 | 2,400.00 | 9,600.00 | |
| 10,000.00 | 12.50 | 2,500.00 | 12,500.00 | 2,500.00 | 10,000.00 | |
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