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Margin Required
I'm new to intrade, so I've been learning the ropes. what does margin required mean?
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Inappropriate?Margin is the funds required to cover the potential losses you may incur when you make trades.
When you make a trade the maximum amount you can lose is frozen in your account as margin. If you don't have enough funds to cover your postential loss then you will not be able to make the trade.
If you trade turns out to be a winner then the margin that is frozen is released back to your account. If you trade is a loser then the margin frozen to cover the trade is debited from your account balance as an actual loss. -
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Inappropriate?One more question. Could you clarify maximum profit. What exactly does this mean? Thanks
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Inappropriate?The maximum profit figure is the amount of profit you will receive should your position expire (settle) at a winning price.
We use "binary" markets which always settle at 0 or 100. If you buy into a position and it expires at 100 then you will receive your maximum profit. If you trade out of your position before the market is expired you may still receive profit, but it will be less than the maximum.
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