What is the Commodity Margin Requirement for 1:100 Commodity Trading Leverage?

• If = 1:100 - Commodity Trading Leverage

Then the commodity trading margin requirement is = 1/100 *100= 1%

If you have $1,000,

1,000* 100 = $100,000.

1,000 / 100,000 * 100= 1%

(Simplify - your commodity trading capital is $1,000 after commodity leverage you control $100,000 - $1,000 is what percentage of $100,000 - it is 1% margin) that's your commodity trading margin requirement.

Your margin requirement is 1% - This means to open a commodity trade position you only need to deposit 1% of the position value and the rest of the money you'll borrow from your commodity broker using the 100:1 commodity trading leverage option.