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

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19th Floor
Shanghai Commercial Bank Tower
12 Queen’s Road Central
Hong Kong

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Hong Kong S.A.R

Saxo Capital Markets HK is a company authorised and regulated by the Securities and Futures Commission of Hong Kong. Saxo Capital Markets HK Limited holds a Type 1 Regulated Activity (Dealing in securities); Type 2 Regulated Activity (Dealing in Futures Contract); Type 3 Regulated Activity (Leveraged foreign exchange trading); Type 4 Regulated Activity (Advising on securities) and Type 9 Regulated Activity (Asset Management) licenses (CE No. AVD061). Registered address: 19th Floor, Shanghai Commercial Bank Tower, 12 Queen’s Road Central, Hong Kong

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