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FOREX LEVERAGE MARGIN

March 24th, 2010
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Margin:
Margin is the amount of money needed to open or maintain a position. In essence it is a loan from a broker to an investor. The amount of margin required is dependent on the leverage used. Greater leverage, margin required will be smaller.

Leverage:
Margin and Leverage are related terms. Leverage is the ability to control larger dollar amounts of a commodity with a comparatively small amount of capital – the Margin. With  FXPRIMUS, IKOFX, FXPRO you can leverage up to 500:1, meaning with $1000, a trader can control a position of $500,000. You may request a lower leverage and therefore a larger required margin if you like. Note that higher leverage magnifies both potential profit and risk of loss.

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Risk Warning : Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Disclaimer : Past performance is not necessarily indicative of future trading results. No representation is being made that any account is likely to achieve profits or losses as indicated. The composite monthly results should be viewed as hypothetical. Trade at your own risk.



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