What is Margin in forex trading?
The amount of money required to open and maintain a leveraged position. It acts as a good faith deposit. Margin = (Trade Size / Leverage).
What this looks like across the brokers we track
Across the 40 brokers BrokerAnalysis tracks, advertised maximum leverage ranges from 1:30 to 1:3000, with a median of 1:500. 10 of them cap retail leverage at 1:30 or lower, which is the ceiling EU and UK rules impose.
Measured across 40 entities in the BrokerAnalysis dataset. See the full broker comparison
Detailed Explanation
It acts as a good faith deposit. Margin = (Trade Size / Leverage).
Want to learn more?
Check out our full Academy courses to master Margin and other concepts.
Visit Academy