Forex - Margin and leverage
Level: Beginner / Length: 11 minutes
In this module, we’ll explore the concept of margin and leverage in more depth. It is not only a key part of forex trading, it can potentially make a huge difference to your trades – positively and negatively – so we assess the various aspects here.
It’s important to understand ‘nominal margin’ and how that is calculated. What is the ‘available margin’ in your account and what would the implications of a ‘margin call’ be?
We show you what to be aware of and walk you through some examples.
- What margin is and what it does
- How to calculate nominal margin requirements
- The effects of changes to those margin requirements
- The advantages and disadvantages of leverage
Please note that Saxo Academy is property of Saxo Bank A/S. The materials published on Saxo Academy should not be considered as financial, investment, tax, trading or other advice, or recommendation to invest or disinvest in a particular manner. SCML assumes no liability for any losses resulting from trading in accordance with a perceived recommendation or reliance on Saxo Academy materials. Following or replicating other traders involves risk. Past performance of a trader is not indicative of future results.