Your leverage, which is expressed in ratios, is now Of course, I think 1: It is used by your broker to maintain your position. Margin is usually expressed as a percentage of the full amount of the position.

Based on the margin required by your broker, you can calculate the maximum leverage you can wield with your trading account. This is an easy one because we just talked about it.

Calculating Leverage in Forex

It is the amount of money your broker requires from you to open a position. It is expressed in percentages.

This is just another phrase for your trading bankroll. This is the money in your account that is available to open new positions. You get this when the amount of money in your account cannot cover your possible loss.

It happens when your equity falls below your used margin. If a margin call occurs, some or all open positions will be closed by the broker at the market price.

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School of Pipsology Undergraduate - Senior The Number 1 Cause of Death of Forex Traders. Leverage and Margin Explained. Partner Center Find a Broker.

Calculating Leverage & How Much is Too Much?

The Number 1 Cause of Death of Forex Traders. Scaling In and Out.

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