I opened an account with forex.com and I just recently placed a trade. I’m using there standard account. After placing a trade I noticed the broker took some of my capital as margin. I did not setup the account to use Margin.
Can anyone explain to me why this is happening? I wanted to trade with a cash account.
There’s no such thing as a cash accoun twhen trading forex.
Before you opening a live account, you should’ve read the entire Margin 101 section in the School of Pipsology.
It will explain how margin trading works.
Start with this lesson:
Margin trading allows you to enter positions that are larger than your account balance. But one must be careful with it, as it is risky.