What is the Indices Trading Margin Requirement for 1:50 Indices Trading Leverage?
- If = 1:50 - Indices Trading Leverage
Then the indices trading margin requirement is = 1/50 *100= 2%
if you have $1,000,
1,000* 50 = $50,000.
1,000 / 50,000 * 100= 2%
(Simplify - your indices trading capital is $1,000 after stock indices leverage you control $50,000 - $1,000 is what percent of $50,000 - it is 2% margin) that is your indices trading margin requirement.
Your margin requirement is 2% - This means to open a indices trade position you only need to deposit 2% of the position value and the rest of the money you will borrow from your indices broker using the 50:1 indices trading leverage option.