1. The funds deposited in the forex futures trading account are called the initial deposit.

2. Balance, net value and floating profit and loss

1) When there is no position (i.e. short position, i.e. no open trade order),

The amount of funds in the account is the cash balance (referred to as the balance).

At this point, the net account value = balance.

2) When there is a position, the position will have a profit and loss, that is, a floating profit and loss.

Net account value = balance+floating profit and loss.

Floating gains and losses are positive and profitable, with net value >; Balance,

The floating profit and loss is negative and in a loss state, and its net value is

3. Used margin and available margin

1) When placing an order (that is, opening a position), according to the trading volume and leverage of the position,

A certain number of positions need to spend a corresponding amount of margin, which is called used margin (or occupied margin).

(The greater the leverage, the smaller the occupation margin; The bigger the position, the more margin it takes up)

2) Accordingly, available margin (also called unused margin) = net value-used margin.

In other words, the net value is the total margin, that is, the sum of the used margin and the available margin.

3) The occupation margin is only occupied by the position and is not deducted from the account, so the balance will not change.

4) When closing the position, add the floating profit and loss of the position to the balance, the profit and loss will increase, and the loss and balance will decrease.

The corresponding occupancy margin is released and added to the available margin.

4. Overnight interest

There will be overnight interest on positions of some products, and interest will be generated across days (5 points when crossing some platforms, such as Beijing).

When holding a long-term position, if the interest is positive, the balance will increase every day because of the interest, otherwise, the balance will decrease every day.

Of course, the net value also increases or decreases accordingly.

5. Short position

In the normal platform, when the available margin is 0 due to position loss and interest deduction,

All positions will be forced to close, and the remaining funds in the account will only be the released occupation margin.

This is the explosion phenomenon.

Knowing the above concepts, you will find out how to ask and what you want to know.

I list two points:

☆ The trading platform will automatically calculate the required margin when opening a position, but it will not be deducted from the account.

☆ After opening a position, you can never close the position unless you open the position.

I wrote all the above word for word, and hope to adopt it.

You can communicate further if you have any questions.