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The best FOREX trading platform is Gurufx Market, that offers a user-friendly trading platform and the fastest execution through its Gurufx Market server.
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When trading online with Gurufx Market, we guarantee that there will not be any rejections or requotes.
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Our adaptable leverage structure helps traders reduce risk and increase profit.
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The type of trading account and the amount of money in the account determine the range of leverage.
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The range of leverage available for forex market trading at Gurufx Market is 1:1 to 1:400. The margin needs would increase with the amount of funds.
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The rising expense of hedging in open orders is the cause. Leverage varies and rises in tandem with an increase in margin requirements.
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There are no limitations on trading tactics at Gurufx Market. Depending on the quantity of their investment, a trader can choose whatever trading strategy they choose using our adjustable leverage system.
Leverage Ratio and Minimum Margin Requirements
- The ratio that represents the broker’s required margin is called leverage. For instance, if a broker mandates a minimum margin of 2% in an account, a trader must have at least 2% of the current trade’s total value in cash in the account before proceeding.
- One way to express the leverage ratio is as follows: 2% margin is equal to a 50:1 leverage ratio (1 divided by 50 equals 0.02 or 2%). Leverage and minimum margin requirements are related in the following way:
- As a trader, it’s critical to comprehend the advantages and disadvantages of using leverage.
As a model, a 50:1 ratio indicates that for every dollar in the account, a trade of up to $50 could be done.
Using as little as $1,000 in available margin in your account, you can trade up to $50,000 at 50:1 leverage, making margin-based trading a potentially powerful tool.
This shows that if you put $1,000 in the trade, you may potentially make as much money as if you invested $50,000.
Naturally, you run the danger of losing money based on a $50,000 trade in addition to the possibility of making $50,000, and these losses can mount up quickly. Traders who experience a loss and do not have enough margin left in their account may be at danger of a margin closeout.