Forex

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.


How do you calculate nominal margin?

We’ll show you the impact of leverage on your trades


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

IMPORTANT INFORMATION

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.