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Old 7th September 2011, 09:22
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Default Margin VS Leverage

Hey everyone,
Someone can please explain me the differences between margin and leverage?

Thanks
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Old 7th September 2011, 11:11
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Margin is the actual amount of money that is used by the trader to open a leveraged position.

Leverage is ratio (for example 1:100), which shows the relation between the margin and the actual value of the position.
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Old 9th September 2011, 09:31
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Margin means the money you need to deposit to open a position
Leverage is 1:100 is the amount that your position is inflated

For 1:100 leverage means that you can buy 1 lot usd with 1000 deposit in your account, this 1000 deposited will be the required margin to open this 1 lot postion.
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Old 12th September 2011, 09:27
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Thank you guys!
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