Forex Margin

January 31, 2023 Beginner
Learn how margin is applied in forex trading, its benefits and risks, and why margin is one of the prime reasons traders are drawn to the forex market.
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Learn more about the foreign exchange.

Will the U.S. Dollar Be Dethroned?

There has been a long-term trend toward currency diversification in global financial transactions and trade, but we don't see the U.S. dollar losing its dominance any time soon.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve. Past performance does not indicate or guarantee future success. Returns will vary and all investments involve risks, including loss of principal.

Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may liquidate your account, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call.

Investing involves risks, including the loss of principal invested.

Forex trading involves leverage, carries a high level of risk, and is not suitable for all investors. Please read the NFA booklet Trading Forex: What Investors Need to Know prior to trading forex products.

Forex accounts do not receive any protection or guarantee from the Securities Investor Protection Corporation (SIPC), nor do they receive a preference in any bankruptcy proceeding pursuant to Part 190 of the CFTC's regulations. Forex trading services are provided by Charles Schwab Futures and Forex LLC. Trading privileges are subject to review and approval. Not all clients will qualify. Forex accounts are not available to residents of Ohio or Arizona.

Charles Schwab Futures and Forex LLC makes no investment recommendations and does not provide financial, tax, or legal advice. Content and tools are provided for educational and informational purposes only. Any stock, options, or futures symbol displayed are for illustrative purposes only and are not intended to portray a recommendation to buy or sell a particular product.

Charles Schwab Futures and Forex LLC, a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member. Charles Schwab Futures and Forex LLC is a subsidiary of The Charles Schwab Corporation.

Charles Schwab Futures and Forex LLC 600 W. Chicago, Suite 800, Chicago IL 60654.

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