How much margin is required?

January 17, 2014

What is margin?

In Forex trading, a margin is required to trade. A margin can be considered as the collateral or deposit. This margin allows you take a ‘loan’ – access to a larger amount of capital. This borrowed capital is leverage.

You should take into account your leverage ratio, when determining how much margin will be required.

How do you calculate the margin per trade?

Overall Lot Size / Leverage Amount = Margin Required
Example with 2 lots at leverage of 400:1

200,000 / 400 = $500 margin required

 

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