Initial Margin high compared to market value, why?

Nov 19, 2023 at 18:25
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5 Replies
Medlem sedan Nov 19, 2023   3 inlägg
Nov 19, 2023 at 18:25
I'm very new and reading everything I can, but I don't understand and can't find the information with a simple search regarding this.
I have a very small account that I started to play with as I'm learning. I thought I'd dip into the pool with a crypto. As I'm watching the chart I see the value at $43.97 and the Initial Margin at $45.87. Now as the day progresses I'm watching the chart and my position. My position says my open price is 45.87 and the current price is 44.06, but on the chart the price says 45.23 at the 1min interval.
Where does that difference come from and what is it? Is it different for each broker? On some symbols I looked at, it seemed very high compared to the current value and I wondered if the price could ever overcome the initial price.
Medlem sedan Nov 11, 2022   25 inlägg
Nov 19, 2023 at 21:29
The difference could be the chart showing the bid or the ask price. Some charts will let you display both. The current price often times is the difference between the bid and ask.

Hope that helps.
Medlem sedan Nov 19, 2023   3 inlägg
Nov 20, 2023 at 00:42
jameshilliard1 posted:
The difference could be the chart showing the bid or the ask price. Some charts will let you display both. The current price often times is the difference between the bid and ask.

Hope that helps.
Thanks, but I'm not sure that is what it is.
My current position is Price Open 45.87 Price Current 44.69 Profit -11.90. I would expect the difference to be -1.18. Also, the current price is 44.73 but on the chart, it says 45.89. Still not understanding.
Medlem sedan Nov 11, 2022   25 inlägg
Nov 20, 2023 at 01:23
What is the spread? And how much did you pay in commissions? The price shown on the chart is most likely the Ask price. The current price is most likely the price between the bid and ask.
Medlem sedan Nov 19, 2023   3 inlägg
Nov 22, 2023 at 14:22
I asked a trader at the broker I'm with and he said it is the commission. So it is front-loaded to me. I'm a little surprised at how high it was but I know what I'm working with now.
Medlem sedan Nov 02, 2018   10 inlägg
Nov 22, 2023 at 14:48
Often commission is paid when you open a trade AND when you close a trade
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