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Old 03-22-2007, 10:40 AM
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rhodytrader rhodytrader is offline
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Join Date: Dec 2006
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pippy123 & genghisclown are right, even if they don't seem too confident about it.

When you do a trade you are borrowing the short currency, converting it to the long currency, then putting that on deposit. None of your own money is used at all in there. (That process is where the interest comes in to play, by the way). The margin you put up is just a security deposit against a decline in value.
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