What's the Margin Requirement for 1:10 Leverage?
- If = 1:10 - Leverage
Then the margin requirement = 1/10 *100= 10%
If you've got $1,000 dollars,
1,000* 10 = $10,000.
1,000 / 10,000 * 100= 10 %
Simple example: Your equity is $1,000. With leverage, you control $10,000. That makes a 10% margin need.
A 10% margin requirement means you need to deposit only 10% of the position value when opening a trade. The remaining funds are borrowed from your broker through a 10:1 leverage ratio.
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