What is the Indices Trading Margin Requirement for 1:25 Indices Trading Leverage?

• If = 1:25 - Indices Trading Leverage

Then the indices trading margin requirement is = 1/25 *100= 4%

if you have $1,000,

1,000* 25 = $25,000.

1,000 / 25,000 * 100= 4%

(Simplify - your indices trading capital is $1,000 after stock indices leverage you control $25,000 - $1,000 is what percent of $25,000 - it is 4% margin) that is your indices trading margin requirement.

Your margin requirement is 4% - This means to open a indices trade position you only need to deposit 4% of the position value and the rest of the money you will borrow from your indices broker using the 25:1 indices trading leverage option.