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,

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.