June 25, 2022

Leverage Vs Margin

This post was originally published on this siteWhen you trade on margin, you have to deposit a percentage of your trading account as margin. The amount of margin required depends on the leverage ratio you choose. If you use 50:1 leverage, you will be required to deposit 2% of your capital to open a position. If you use 500:1 leverage, you will need to deposit only 0.20%. However, this is a much smaller percentage than the 2% that you must deposit with traditional margin trading. One of the secrets of wealth is to use leverage. This technique involves borrowing a […]