question about margin

[trader2009]

I've traded stocks and options. With stock trades, once you close out a position, the money is not available for trading again for 3 days. For options, it's 1 day. If I make a forex trade, and my broker sets aside $1000 of my money for the margin, and I then close out that trade, is the money immediately available again for me to make another trade, or do I have to wait a day or more for the funds to settle in my account?

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	Margin The deposit required to open or maintain a position. Margin can be either "free" or "used". Used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions. With a $1,000 margin balance in your account and a 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $100,000. This allows a trader to leverage his account by up to 100 times or a leverage ratio of 100:1. If a trader's account falls below the minimum amount required to maintain an open position, he will receive a "margin call" requiring him to either add more money into his or her account or to close the open position. Most brokers will automatically close a trade when the margin balance falls below the amount required to keep it open. The amount required to maintain an open position is dependent on the broker and could be 50% of the original margin required to open the trade.

[DrForex]

Trader2009

In forex the money is immediately available. Other than with stocks the margin never really leaves your account unless you settle a trade for a loss.

So assuming you have $10,000 and do a trade with margin of $300 and you close the trade for a win of $180 then you will immediately have dollar $10180 available for your next trade.

	Margin The deposit required to open or maintain a position. Margin can be either "free" or "used". Used margin is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions. With a $1,000 margin balance in your account and a 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $100,000. This allows a trader to leverage his account by up to 100 times or a leverage ratio of 100:1. If a trader's account falls below the minimum amount required to maintain an open position, he will receive a "margin call" requiring him to either add more money into his or her account or to close the open position. Most brokers will automatically close a trade when the margin balance falls below the amount required to keep it open. The amount required to maintain an open position is dependent on the broker and could be 50% of the original margin required to open the trade.