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What's the Margin Requirement for 1:100 Leverage?

  • If = 1:100 - Leverage

Then margin requirement = 1/100 *100= 1%

If you have $1,000,

1,000* 100 = $100,000.

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

Here's the simple version: with $1,000 in your account and leverage, you control $100,000. That $1,000 is just 1% of $100,000 - so that's your margin requirement.

A 1% margin means you deposit just 1% of the trade value. You borrow the rest from your broker at 100:1 leverage.

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