Tag Archives: forex leverage and margin explained

What is foreign exchange margin?

foreign exchange margin

Foreign exchange margin, also known as forex margin, refers to the collateral or deposit required by a forex trader to open and maintain a trading position in the foreign exchange market. It is a portion of the total value of the trade that a trader must have available in their trading account. Forex trading typically […]

What is 5% margin in forex?

5% margin in forex

A 5% margin in forex means that you need to have 5% of the total trade value as margin in your trading account to open and maintain a position. It is the minimum collateral or deposit required by your broker. To calculate the margin amount, you can follow these steps: Here’s an example to illustrate: […]