oussama94
05-28-2017, 00:15
Let’s say you decide to buy 100,000 EUR and sell USD at a rate of 1.4100. Your account
leverage is 1:200. Do you need 100,000 US dollars to **** the trade? No! With a leverage
of 1:200 you will need to put down only 1/200 of the deal size as the margin, which works
out to $500.
Calculate the margin:
Leverage 1:200
Deal size = 100,000
Divide 100,000 by 200= 500
Margin = $500
This is the amount that will be used to cover your potential losses. In other words, the
margin is the actual amount that you are risking to lose if the trade goes against you.
leverage is 1:200. Do you need 100,000 US dollars to **** the trade? No! With a leverage
of 1:200 you will need to put down only 1/200 of the deal size as the margin, which works
out to $500.
Calculate the margin:
Leverage 1:200
Deal size = 100,000
Divide 100,000 by 200= 500
Margin = $500
This is the amount that will be used to cover your potential losses. In other words, the
margin is the actual amount that you are risking to lose if the trade goes against you.