What is the minimum margin for a 100:1 leverage?

A leverage of 100:1 requires a minimum margin of 1% of the total position size. If you have a $10,000 trading account, you could theoretically open a position size worth $1,000,000 with your total account size allocated as the margin for the trade (1% of $1,000,000).

What is margin trading?

When trading on margin, traders borrow a certain sum of money from brokerage firms by allocating a part of their trading account as the collateral for the trades. While margin trading is very popular on the Forex market, traders can also increase their exposure to futures contracts or on the stock market by using leverage.

What happens after you open a leveraged trade?

After you open your leveraged trade, the initial margin requirement is automatically deposited back to your trading account, together with any realised profits or losses on the trade. Margin and Leverage: What’s the Difference?

What are the most common fees that leverage brokers impose?

Below is a list of the most common fees that leverage brokers impose: When you add leverage to your position you are essentially taking a loan from your broker for the duration of your trade. When you close out the position you get to keep the profit or you have to pay the losses.