TRADING

Balance shows the funds in your account, including the profit and loss from closed trades. Equity is a dynamic value and takes into consideration the profit and loss from open trades at the time. Equity = Balance +/- Profit/Loss from currently open trades.

While there are various online calculators which can help you calculate Profit, Loss and Pip Value, we feel it is useful and important to understand how that actually work. Let’s take the following trade as an example: You think that the euro will raise in value against the US dollar and decide to buy 100,000 … Continued

Tier1FX does not make actual margin calls. Nevertheless, for better protection of your funds, we have set a Margin Call level of 100%. Once it is reached, you would not be able to open new trades, unless for hedging. Clients are encouraged to monitor exposure and risk at all times in order to limit potential … Continued

Margin is calculated as the Position’s Value, converted into your account’s currency and divided by Leverage. Example A: Trading account currency: EUR Currency pair traded: EUR/USD at 1.34500 Lot Size traded: 1.00 (100,000 units) Leverage: 1:50 Margin = EUR100,000 / 50 = EUR 2,000.00 Example B: Trading account currency: USD Currency pair traded: EUR/USD at 1.17500 Lot Size traded: … Continued