Trade Forex Trading

What's the Margin Requirement for 1:50 Leverage?

  • If = 1:50 - Leverage

Then the margin requirement = 1/50 *100= 2%

If you as a trader have $1,000 dollars,

1,000* 50 = $50,000.

1,000 / 50,000 * 100= 2 %

(In simpler terms: your account value is $1,000, leverage allows control over $50,000 – what percentage is $1,000 of $50,000? – it equals 2% margin) this represents your required account margin.

If your margin requirement is 2%, you need to deposit 2% of your position value to open a trade. The remaining funds are provided by your broker through a 50:1 leverage ratio.

Get More Guides and Topics:

XAUUSD Broker