I feel a bit ashamed asking this question as I probably should understand it by now. (Took me a while to understand the concept of spread).
My question is: What is Margin/Free margin/equity and how do these realte to each other? I notice when I have no open trades these values are all the same as the balance however when I open a trade they change.
Am I right is assuming free margin is a value that decreases by a fixed amount per lot of open trades? Eg. $200 per lot, and this stays the same regardless of whether the trades go into positive or negative territory?
From what I understand equity is basically the value the account balance would become if you immediately closed off all trades. Is this correct?
Sorry for sounding like an idiot but it can be difficult enough to find clear explainations of these on the web.
My question is: What is Margin/Free margin/equity and how do these realte to each other? I notice when I have no open trades these values are all the same as the balance however when I open a trade they change.
Am I right is assuming free margin is a value that decreases by a fixed amount per lot of open trades? Eg. $200 per lot, and this stays the same regardless of whether the trades go into positive or negative territory?
From what I understand equity is basically the value the account balance would become if you immediately closed off all trades. Is this correct?
Sorry for sounding like an idiot but it can be difficult enough to find clear explainations of these on the web.