What is the Stock Margin Requirement for 1:25 Stocks Leverage?

• If = 1:25 - Stocks Leverage

Then the stocks margin requirement is = 1/25 *100= 4%

If you have $1,000,

1,000* 25 = $25,000.

1,000 / 25,000 * 100= 4%

(Simplify - your stocks capital is $1,000 after stocks leverage you now control $25,000 - $1,000 is what percentage of $25,000 - it's 4% margin) that is your stocks margin requirement.

Your margin requirement is 4% - This means to open a stocks trade position you only need to deposit 4% of the position value and the rest of the money you will borrow from your stocks broker using the 25:1 stocks leverage option.