When you trade with leverage, you wouldn’t need to pay the 10,000 euros upfront. Instead, you’d put down a small “deposit”, known as margin.
Leverage is the ratio of the transaction size (“position size”) to the actual cash (“trading capital”) used for margin.
For example, 50:1 leverage, also known as a 2% margin requirement, means $2,000 of margin is required to open a position size worth $100,000.
Margin trading lets you open large position sizes using only a fraction of the capital you’d normally need.
This is how you’re able to open $1,250 or $50,000 positions with as little as $25 or $1,000.
You can conduct relatively large transactions with a small amount of initial capital.
Leverage is the ratio of the transaction size (“position size”) to the actual cash (“trading capital”) used for margin.
For example, 50:1 leverage, also known as a 2% margin requirement, means $2,000 of margin is required to open a position size worth $100,000.
Margin trading lets you open large position sizes using only a fraction of the capital you’d normally need.
This is how you’re able to open $1,250 or $50,000 positions with as little as $25 or $1,000.
You can conduct relatively large transactions with a small amount of initial capital.