Trade Stock Indices

What is the Trading Margin Requirement for 1:10 Trading Leverage?

  • If = 1:10 - Trading Leverage

Then the margin requirement is = 1/10 *100= 10%

If you have $1,000,

1,000* 10 = $10,000.

1,000 / 10,000 * 100= 10 percent

(Simplify - your capital 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'll borrow from your broker using the 10:1 leverage option.