What's the Margin Requirement for 1:10 Leverage?
- If = 1:10 - Leverage
Then margin requirement is = 1/10 *100= 10%
If you have $1,000 dollars,
1,000* 10 = $10,000.
1,000 / 10,000 * 100= 10 %
(Simplify - your equity is $1,000 after leverage you now control $10,000 - $1,000 is what percentage of $10,000 - it's 10% margin) that is your margin requirement.
Your margin requirement is 10% - This means to open a trade you only need to deposit 10% of the position value & the rest of the money you will borrow from your broker using the 10:1 leverage ratio.
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