Leverage and Margins
To Understand Leverage and Margins
Leverage can be used to open positions with a larger amount of funds than an actual amount you have in your trading account. Therefore, Leverage is considered as a multiplier which displays a few up to some hundred bigger positions to be opened than the margin against which it is opened.
Let's see for instance in the case that the position size is $10,000 and the used margin is $25
$10,000/$25 = X 400 leverage.
Margin is leverage which is displayed in percentage terms, for instance if the leverage is 1:400, the margin is calculated as 1/400=0.25%. Margin amount is the used margin in Dollar terms for the specific position. For instance if the position size is $10,000 the used margin will be shown as :
$10,000X0.25% = $25 Used Margin.
Table of Examples:
| Position Size |
Leverage |
Margin % |
Used Margin |
Balance |
Usable Margin |
| $2,000,000 USD |
x 400 |
0.25% |
$5,000 USD |
100,000 |
95,000 |
| $10,000 USD |
x 50 |
2% |
$200 USD |
1,200 |
1,000 |
| $20,000 USD |
x 50 |
2% |
$400 USD |
2,800 |
2,000 |
What Kind of leverage does AmigaFX offer?
Currencies (Forex)
Max leverage: 1 : 400 (For all pairs)
Min margin: 0.25% (For all Pairs)
Min Lot size: 10,000 units
Commodities
Max leverage: 1 : 50
Min margin: 4%
Min Lot size for Gold and Silver : 10 units
Min Lot Size for Oil: 100 units
Indices
Max leverage: 1 : 50
Min margin: 2%
Min Lot size: 10 units
How to choose the leverage level I prefer?
The AmigaFX useful platform allows traders to change the leverage level and margin of each position to suit his/her personal risk-reward strategy with just a click.
Note: In case carrying over the weekend, the available leverage could vary.
|
