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.