Many speculative transactions in international financial markets are held on marzhevoy trade (margin trading). Marzhevaya trade began to develop in the process of deregulation of the foreign exchange market since the early 80’s, after the abolition of fixed exchange rates in agreement of finance ministers of leading industrialized countries.

Officially marzhevaya trade was permitted by central banks in most countries in 1986. The essence of marzhevoy trade is that the transaction is not necessary to have the entire amount of the contract value, we need only make a deposit (margin), which is typically 1-10% (typically 2-5%) of the contract.

So, for the transaction to buy or sell a currency, your financial partner credit you the missing amount or, as traders say, provides “shoulder” or “leverage” (leverage). For example, for the purchase of 100,000 dollars for the deutsche mark in the margin of 1% (shoulder 1:100), there is a need to make only a $ 1000 pledge.

This, of course, raises the potential of the player: with the availability of relatively small funds, it can operate in the market amounts are many times larger. At the same time, all gains or losses arising from changes in currency exchange rates, recorded at his own expense. Many Western companies when trading “overnight” a “shoulder” is reduced to 2 times, such as 1:50 to 1:25.