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

• If = 1:50 - Leverage

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

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

1,000* 50 = $50,000.

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

(Simplify - your equity is $1,000 dollars after leverage you control $50,000 - $1,000 is what percent of $50,000 - it is 2% margin) that's your margin requirement.

Your margin requirement is 2% - This means to open a trade you only need to deposit 2% of the position value & the rest of the money you will borrow from your broker using the 50:1 leverage ratio.