Understanding Forex Margin Trading: A Beginners Guide
So, for an investor who wants to trade $100,000, a 1% margin would mean that $1,000 needs to be deposited into the account. In addition, some brokers require higher margin to hold positions over the weekends due to added liquidity risk. So if the regular margin is 1% during the week, the number might increase to 2% on the weekends. For example, if a trader wants to open a 100,000 unit position and the margin requirement is 1%, the [...]
