Margin and leverage

[⭐ kaito kid]

“leverage” is having the ability to control a large amount of money using none or very little of your own money and borrowing the rest.

For example, to control a $100,000 position, your broker will set aside $50 from your account ( Like In FBS Forex Broker ). Your

leverage, which is expressed in ratios, is now 2000:1.

You’re now controlling $100,000 with $50.

Let’s say the $100,000 investment rises in value to $101,000 or $1,000. If you had to come up with the entire $100,000 capital yourself, your return would be a have 1%

($1,000 gain / $100,000 initial investment).

This is also called 1:1 leverage. Of course, I think 1:1 leverage is a misnomer because if you have to come up with the entire amount you’re trying to control, where

is the leverage in that?

Fortunately, you’re not leveraged 1:1, you’re leveraged 2000:1. The broker only had to put aside $50 of your money, so your return is a groovy 400% ($1,000 gain / $50

initial investment).

[gacha]

traders can find many information about definition of forex market, including margin and leverage explanation.
while you may need more informative way of learning, a video explanation would be more interesting
https://www.youtube.com/watch?v=xbs7Khix9rM
contain basic fx knowledge including how to calculate profit/loss, how leverage affect our trading account.
you may want to check their forex infographic
http://www.armadamarkets.com/infographics/
it's more informative and a better way to learn fx market basic knowlegde.

[⭐ kaito kid]

Concept to determine the function of leverage and margin, we can use a calculator trader. traders calculator is a tool that can be used to determine the function of the margin, leverage based lot and currency pairs used.

I use a calculator trader from FBS broker to determine the value of a pip value of my trading plan based on the currency pair that I use

[uncle gober]

I also do a calculation of margin on each trade based on the leverage that I use so I could find out how much margin is used. I usually use a lot 0.01 and a leverage of 1: 500 when I trade in Armada Markets. with this margin calculator we can calculates the minimum account balance required in order to be permitted to open the specified trade at the selected leverage and lot size.

[Gaban]

margin and leverage choose an enormous influence on our trading because of the greater leverage chosen will be smaller margin required so that it will be profitable for us. By doing so we are able to trade with the maximum and comfortable. in instaforex we can trade with leverage 1:1000

[Marty Landry]

Margin and Leverage both have great influence on our results and also for a newbie especially one with low investments it’s a paradise kind of offer and something that not many will really avoid in any given scenario. I have liking for higher leverage that’s why I use OctaFX because they have the highest leverage up to 1.500 so that ensures that I can trade even with low investments and also their margin level is 25% so that helps even more for me to trade with comfort.

[Gaban]

trading using high leverage is very profitable for traders because then it is our opportunity to succeed in this business will be more wide open. for that I prefer trading with leverage 1: 1000

[Umama Rana]

In this trading platform, leverage is well thought-out as a central pecuniary apparatus that allows to a depositor to cultivate his capital revelation to a level that exceeds the initial investment. For the most part of traders are think, for making profit quickly, it is the only way to trade in high leverage. But, practically, sometimes it not works at all. I always like to trade in a small leverage for avoiding risk although I am getting 1:400 leverage from my trading platform MxTrade.

Edited September 23, 2015 by Umama Rana

[Tanzil Al Banna]

I never and ever want to face MC in my live account. That’s way I already reduced my trading leverage from 1:400 to 1:100. I see, high trading leverage inspired me to open my trade with big lot size.

But interestingly, now I can’t do over trading as I use reliable trading leverage for my live account. Actually, TradingBanks is not just a name but a global financial pillar. So, I get best access for live trading with enough security.

[uncle gober]

leverage will help traders to improve the balance so it can trade using small lots and spread helps traders to be able to get the difference between bid and ask prices are small. Now I am trying to combine the advantages provided by the broker Tickmill with a leverage of 1: 500 and Spreads from 0 pips

[Money Morkel]

Actually, Traders select their trading instrument according to their trading experience. In my trading career, my foremost element is high leverage that provides my trading broker Trade12. By means of this high leverage, I am able to trade in a high lot in spite of having small balance.

Practically, leverage is considered as an important financial tool that allows growing his market exposure to a level which exceeds the initial investment. I took high leverage in my demo trading to see the performance how it works. Generally, we the traders are willing to trade in a high leverage for making profit instantly in particularly newcomers.

[Gaban]

trading using high leverage will require a small margin and therefore, the election of leverage must be adapted to the abilities and our capital. Trading using small capital will eat better trading using high leverage so that the resilience of our account will be maintained

[Shivansh Sharma]

Leverage is something that definitely plays a pretty important role and allows us to work smoothly especially if our investment is not too much, it is also crucial that we don’t become greedy because of higher leverage, I believe leverage is something that should be used wisely instead of using it blindly. I am trading with huge leverage up to 1.500 with OctaFX broker; it is seriously helpful and allows me to work pretty well given i prefer to work with low initial investment. I have 2 accounts one where I use high leverage and do scalping while in other I use it for long term basis and keep it that way only, so that’s pretty decent way to trade with getting good results.

[Gaban]

margin and leverage influence, where trading using high leverage, the margin required is very small so our chances will be greater, and therefore we should be able to take advantage of leverage properly so that it will benefit us. trading by using little capital so it is better to use high leverage

[Money Morkel]

Margin and leverage are two important financial tool which an investor should consider when choosing a trading broker. in my trading career, I am very lucky to select Trade12 as my trading broker where I am getting minimum margin requirement and up to leverage 1:400 that is very supportive to trade in a high lot in spite of small balance.

[Gaban]

leverage is very profitable for traders because of the leverage that we can trade with a maximum because that way we can take advantage of capital well. Trading with leverage is high then we will be even have greater opportunities

[uncle gober]

every trader has the option to use traditional respectively leverage will be selected. election of leverage should certainly be adjusted with our trading system and our ability. because it has a leverage effect in our trading. I am currently comfortable using leverage 1:500 of TICKMILL

[Umama Rana]

In order to my trading experience, I have seen that leverage and margin is two important financial tools which an investor should consider when choosing a broker. We the traders actually have to choose in regulated trading broker which make sure minimum margin requirement and high leverage that is very supportive to make profit rapidly.

[Marty Landry]

Leverage and margin levels are most important for anyone and if we’re to get success then we got to make sure we understand the benefits and disadvantage of these things and only then we could get success. I am really grateful to broker like OctaFX which not only provide highest leverage and margin levels, but also have great educational guide for making us understand the value, this is the reason why I like it so much and enjoy trading with them all the time. Also, we can participate regularly on their demo contest like Southampton Supreme, cTrader or Champion and all are extraordinary with each having mouth-watering prizes, so apart from been able to learn from here, I can execute that easily.

[Umama Rana]

We the traders have to choose in regulated trading broker which make sure minimum margin requirement and high leverage. Actually, leverage is mainly considered as an important financial tool that allows an investor to grow his market exposure to al level that exceeds the initial investment. practically, by and large traders fall a great loss by taking high leverage.

[Marty Landry]

Right use of margin/leverage can be unbelievable, but incorrect use of this can be disaster and lead to huge losses, so that’s why we got to make sure we know the way to use it properly or else we could lose massively. I trade with OctaFX broker and with them, I use highest leverage which is up to 1.500, it’s really huge leverage and helps us start off with as low capital. I started off with just 5 dollars on their ECN account and I managed to make it up to 100 USD and that’s only thanks to such high leverage, so I believe if we manage these things correctly then there are endless rewards to take, but of course misuse leads to disaster as I said before.

[Gaban]

we must take advantage of the leverage it properly. trading with great leverage will give us a greater opportunity, but we must be careful to use the leverage of a good broker. because of the substantial leverage, the margin required is very small

[Umama Rana]

It is very much important to choose in a regulated trading broker which make sure minimum margin requirement and high leverage. Actually, leverage is considered as an important financial tool that allows an investor to grow his market exposure that exceeds the initials investment. By and large traders in particularly the newcomers fall a great loss by taking high leverage.

[Gaban]

margin and leverage greatly affect the outcome of our trading, trading with has a small margin then we will require high leverage, but we need to caution against the use of high leverage. If we are not able to control themselves then we can trade with greedy when trading with high leverage

[Money Morkel]

In Fx trading, leverage is an important financial tool which an investor should consider when choosing a broker.  In my trading career, I always use small leverage for avoiding risk. But in my demo trading I took high leverage to see the performance how it works.