What is Margin / Leverage?
The specific amount that you are required to put aside to hold a position is referred to as your margin requirement. Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit.
Request Margin Brief
|Currency Pair||Base Currency|
*all examples we give in this page is based on leverage of 1:400
How To Calculate Request Margin？
By default Teletrade offers approximately 400:1¹ leverage (or 0.25% margin) on its forex trading accounts. Margin requirements (per 100K lot) at Teletrade are 50USD for most currency pairs.
Calculation Formula:Nominate Trading Amount / leverage = Margin
For example, if trade 100K EUR/USD, with leverage of 400:1
Then Request Margin: 100000/400=250(EUR)
¹Leverage: Leverage is a double-edged sword and can dramatically amplify your profits. It can also just as dramatically amplify your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.
The comparison between no-leverage trading and leverage trading:
|No-leverage Trading||Leverage Trading|
|Amount Invested||USD 100,000||Invested: USD 2,000;|
Used Margin: USD 1,000
|Profit||USD 2,000||USD 1,965|
|Trading Unit||Contract Size|
|One standard unit is l lot||100,000 basic currency (100K)|
|1/10 standard unit is 0.1 lot||10,000 basic currency (10K)|
|1/100 standard unit is 0.01 lot||1,000 basic currency (1K)|