Skip to main content

Leverage & Margin

Leverage is the leverage or loan from a broker given to a trader, so that the trader funds have greater purchasing power, for example, if there is a $ 100 fund using 1: 100 leverage, the $ 100 has a power equivalent to $ 10,000.  If the leverage is 1: 500, then the $ 100 fund has the ability to make transactions equivalent to $ 50,000 or 500 times more than the nominal of the fund itself.

 Margin is a guarantee given to a broker every time a position is opened.  The size of the margin is influenced by the leverage and the amount of trading volume (lots) opened by the trader.  The margin calculation formula is: Leverage x Volume (Lot) x Contract Size.  If we don't pay attention to margins, our trading account might get margin call.

=============================
1: 100 leverage means (1/100) x100% = 1  % 
leverage 1: 200 means (1/200) x100% = 0.5% 
leverage 1: 500 means (1/500) x100% = 0.2% 
leverage 1: 600 means (1/600) x100% =?  
leverage 1: 1000 means (1/1000) x 100% =?  =============================

Comments

Popular posts from this blog

About

We give several signals to enter into the market both forex We provide solutions needed by a trader., Starting from Analysis, Technical,Etc. We provide all the resources from various trusted sources that we reference to you through surveys for several time decisions. Everything is there itself. And all the results are completely outside our responsibility. We are the ONLY source of INFORMATION for you.This Is Our Reference Source. Forex Analysis  Technical  News  Learn Consultation