Margin trade is the purchase and sale of a currency in the FOREX currency market by using the support of the credit leverage granted by the bank.
Trading in the currency market is one of the easiest types of business to start. It has a high profit potential and requires a comparatively small initial investment.

What is credit leverage?
Credit leverage is a credit line granted by a broker that amounts to 100 times Your invested guarantee deposit. For instance, by investing USD 2,000, the credit leverage provides You with the opportunity to commence trading in the currency market with an amount 100 times larger, i.e., USD 200,000, which in turn increases the volume of potential profit.

Margin trade is actually available for all currency combinations (USD/EUR, USD/GBP, EUR/GBP, EUR/JPY etc.), which means that You may choose any currency combination and commence currency trading in the FOREX currency market.

Margin trade provides the opportunity to:

• gain extra profit by combining the basic type of operation and margin trade;
• perform trading transaction within seconds;
• open a position in any currency, irrespective of the guarantee deposit currency;
• trade in the currency market without paying commissions to the bank.

• open positions may be postponed until the next day (SWAP);
• the bank accepts all standard order forms (STOP, LIMIT, GTC, OCO, etc.);
• 24-hour order monitoring.

Note! By opening a currency position, no actual supply of currency takes place.

FAQ

How big does the security deposit need to be?

How does the margin trade take place?
By settling the security deposit, a position is opened for You to start trading in the currency market, where You may choose any currency combination and start trading. When the desired extent of profit has been reached, You may close the position and fix the profit with a telephone call to a bank dealer.

What are the opportunities for profit?
In order to evaluate the opportunities and the extent of potential profit, let’s view an example.
An investor is willing to commence currency trade because he believes that the value of the GBP against the USD could rise in the near future; he therefore decides to purchase GBP 200,000 for USD. The bank’s dealer quotes a purchase-sale rate of 1.8309 – 1.8314 (i.e., GBP 1 = USD 1.8314) and the transaction is deemed concluded. A few hours later, the rate of GBP against USD rises to 1.8341 – 1.8346 and the investor decides to close the position at the rate 1.8341 and fix the profit. As a result, the investor obtained 27 points (1.8341 – 1.8314 = 0.0027) and the total profit amounts to USD 540 (200,000 x 0.0027). 

What is the bank’s commission fee?
The bank does not deduct any additional commission fees. By carrying out the transactions within the currency market, the dealers determine the purchase-sale rate for currencies, which constitutes the difference of 5 points, i.e., a dealer would offer the rate for EUR against USD in the amount of 1.2508 – 1.2513 (the purchase-sales rate, respectively).

What is required to start trading in the FOREX market?
In order to start trading in the market, You must open a current account in the bank and settle a security deposit.

How big does the security deposit need to be?
The minimum security deposit is USD 2,000 or the equivalent amount in other currency; the maximum security deposit is unlimited.

If You have any questions about margin trade, feel free to call the bank’s information line at +371 6 777 5 888 or visit any JSC AS Latvijas Biznesa banka Customer Service Centre and ask our bank specialists questions You are interested in.