After earning an MBA from the Technological University of Mexico (UNITEC), Pablo Soria de Lachica went on to join the investment and trading industry. Pablo Soria de Lachica currently serves as the director of business development at Bforex, a currency trading firm that helps traders conduct transactions on the foreign exchange (forex) market.
To help new traders begin trading on the forex market, the Bforex website offers a wide range of trading resources, including information on trading margins and leverage. Bforex explains that the trading margin as the disparity between a trader’s collateral capital and the sum allotted for trade. According to Bforex, forex traders are required to maintain a certain level of collateral in order to sustain open positions on the market. The forex market, in contrast to stocks and commodities, does not have margin calls, and all open positions will close automatically if an account drops under the margin requirements.
On its website, Bforex also explores leverage, which enables forex traders to manage a higher amount of currency during a trade than they presently have in their trading account. Bforex emphasizes that the leverage system is a powerful component of forex trading and can help traders yield significant profits.