Leverage
Leverage is the percentage (%) of borrowed capital allowed by your broker to use when you open a trade position.
Typically in Stock market when you buy 100 shares of a company trading at $10 per share, you are required $1,000 to open the trade.
Some stock brokers would let you borrow money from them, most cases it is 50% of the total stock value.
So instead of $1,000 you are now only required to have $500. This helps traders to buy more shares with same amount of money.
Margin
Margin and leverage are concepts that go hand-in-hand in currency trading. Margin is expressed as the percentage of position size (e.g. 5% or 1%).On a 1% margin, for instance, a position of $1,000,000 will require a deposit of $10,000.
Actual Required Margin would change by Leverage Level
Leverage |
Amount Traded |
Required Margin |
1:1 |
$100,000 |
$100,000 |
50:1 |
$100,000 |
$20,000 |
100:1 |
$100,000 |
$1,000 |
200:1 |
$100,000 |
$500 |
Land-FX Leverage
Equity Amount |
Leverage Level |
Leverage Level per Exposure |
- Land-FX Account |
$50,000 ~ $99,999 |
Up to 200:1 |
If total open position becomes 100 lots for currency pairs, account leverage could be 100:1 |
$100,000 ~ |
Up to 100:1 |
If total open position becomes 100 lots for currency pairs, account leverage could be 50:1 |
- ECN Account |
$50,000 ~ $99,999 |
Up to 200:1 |
Leverage not changed. |
$100,000 ~ |
Up to 100:1 |