Leverage is the ratio between the amount of money you really have and the amount of money you can trade, which is usually expressed as 1:X.
Margin is the amount that is required to buy or sell a specific instrument.
This varies based on asset class and tiers level.
Below is an example of the EURUSD FX pair based on a leverage of 1:1000:
- To trade 1 Standard lot of EURUSD (contract size of 100,000 USD) a margin of US$ 1000 is required.
- To trade 1 Mini lot of EURUSD (contract size of 10,000 USD) a margin of US$100 is required.
- To trade 1 Cent lot of EURUSD (contract size of 1,000 USD) a margin of US$10 is required.
Please note that the higher the volume traded based on each asset class, the lower the leverage, meaning the higher the margin is required.
Please refer to the ‘Leverage’ page under the ‘Trading’ section of our website.