Disliked{quote} There is no "leverage" for those of us who are in exchange-traded products trading. But Margin is something all need to understand.... https://www.investopedia.com/terms/m...ancemargin.asp https://www.cboe.com/learncenter/pdf/margin2-00.pdf https://www.nfa.futures.org/members/...s-handbook.pdf https://www.tdameritrade.com/retail-...df/AMTD086.pdfIgnored
All I know is about Forex and this site is named after Forex.
In Forex, Margin and Leverage are defined as such:
Margin: A good faith deposit or performance bond. In leveraged trading, the margin amount is held in deposit while the trade is open. The amount of margin required to enter a trade is determined by the rules discussed below. Although there is no minimum margin deposit required to open an fxTrade account with OANDA, the margin available in your account will limit the size of the positions you can open.
Leverage: The reciprocal of Margin. For example, 2% margin is the same as 50:1 leverage. The maximum leverage allowed is determined by the regulators in each geographic region. Clients and OANDA may choose to be conservative and limit leverage utilized to lower levels than allowed by the regulators.
Regulatory margin requirement: The minimum margin required by the regulator for the instrument. The fxTrade margin requirements page lists the Regulatory Margin Requirements for each instrument.
Margin requirement: The margin required for the instrument in your account. This is the greater of the Regulatory Margin Requirement for the instrument and the margin you selected for your account. For example, if the regulator requires 2% (50:1 leverage) on EUR/GBP, and you selected 5% margin (20:1) leverage for your account, your Margin Requirement for the instrument will be greater of the two, which is 5%.
https://oanda.secure.force.com/Answe...language=en_US
Sometimes one has to unlearn what they know to learn it correctly for a specific field.
To be sane, it is better for me to stick to the calendar and news sections of this site.
if someone does not know the relationship between the margin and the leverage, is NOT a Forex Trader at all.
People don't even know the basics, posing as big shot traders in every thread.
DONE with this.
Determination + Persistence = Success