What's the Margin Requirement for 1:100 Leverage?
- If = 1:100 - Leverage
Then margin requirement is = 1/100 *100= 1%
If you have $1,000,
1,000* 100 = $100,000.
1,000 / 100,000 * 100= 1%
(Simplify - your funds is $1,000 after leverage you control $100,000 - $1,000 is what percentage of $100,000 - it is 1% margin) that's your margin requirement.
Your margin requirement is 1% - This means to open a trade you only need to deposit 1% of the position value & the rest of the money you will borrow from your online broker using the 100:1 leverage option.
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