Leverage & Margin

What is Margin?

Margin is the amount of money that a trader needs to put forward in order to open a trade. Trading forex on margin enables traders to increase their position size. Margin allows traders to open leveraged trading positions, giving them more exposure to the markets with a smaller initial capital outlay.

What is Leverage?

Leverage in Forex is the ratio of the trader's funds to the size of the broker's credit. In other words, leverage is a borrowed capital to increase the potential returns. The Forex leverage size usually exceeds the invested capital several times.

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