How is Indices Trading Margin Calculated?
indices trading margin is calculated based on a percent. The percent ratio can be 1% indices trading margin for 100:1 indices trading leverage or 2% indices trading margin for 50:1 indices trading leverage or 10% indices trading margin for 10:1 stock indexes trading leverage.
For 1% indices trading margin for 100:1 indices trading leverage it means
1:100 stock indices leverage option means a indices trader can borrow $100 dollars from their indices broker for every $1 dollar in their indices trading account:
Therefore, what is the percent of the $1 dollar in a indices trader's account compared to the $100 dollars borrowed from their indices broker? it is 1%
1/100*100 = 1% Indices Trading Margin
For 2% indices trading margin for 50:1 indices trading leverage it means
1:50 stock indices leverage option means a indices trader can borrow $50 dollars from their indices broker for every $1 dollar in their indices trading account:
Therefore, what is the percent of the $1 dollar in a indices trader's account compared to the $50 dollars borrowed from their indices broker? it is 2%
1/50*100 = 2% Indices Trading Margin
For 10% indices trading margin for 10:1 indices trading leverage it means
1:10 stock indices leverage option means a indices trader can borrow $10 dollars from their indices broker for every $1 dollar in their indices trading account:
Therefore, what is the percent of the $1 dollar in a indices trader's account compared to the $10 dollars borrowed from their indices broker? it is 10%
1/10*100 = 10% Indices Trading Margin
To Learn and Know More about Indices Trading Leverage and Margin - Read the Topics Below:
Indices Trading Leverage and Margin Explained