How Leverage Works in the Market?
The standard leverage ratio provided by most brokers is 100:1 leverage.
This means that a trader can borrow $100 from their broker for every $1 dollar in their trading account.
For this leverage it means that the margin requirement for a account is 1% - 1/100 is equivalent to 1%
A trader can also choose the 50:1 leverage
This leverage ratio of 50:1 - means that a trader can borrow $50 from their broker for every $1 dollar in their trading account.
For this leverage it means that the margin requirement for a account is 2% - 1/50 is equal to 2 %
To Learn and Know More about Leverage and Margin - Read the Topics Below:
Leverage & Margin Explained
