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  1. Martin Gomes
  2. Forex Brokers Discussion
  3. Thursday, 01 November 2018
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In Forex trading Leverage and Margin are two important factors. This two factors are cause worries if it's not used appropriately.

Although interconnected — since both involve borrowing — Leverage and Margin are are not the equivalent. Leverage refers to taking on debt, while margin is debt or borrowed money a firm uses to invest in other financial instruments. A margin account allows you to borrow money from a broker for a fixed interest rate to purchase securities, options or futures contracts in the anticipation of receiving substantially high returns.
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Margin Account is something which is a type of security of trading. Traders keep the money as a security amount and then trade on the basis of that investment.
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Leverage is the use of borrowed capital for (an investment), expecting the profits made to be greater than the interest payable.
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The Forex edge level is the rate esteem dependent on the measure of available usable edge versus utilized edge. At the end of the day, it is the proportion of value to edge, and is ascertained in the accompanying way: Margin level = (value/utilized edge) x 100.
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Leverage: Use in exchanging basically alludes to the capacity to expand the measure of your exchange or venture by utilizing credit from an intermediary. Use is a credit that is given to a speculator facilitate that is taking care of the financial specialist's or merchant's forex account.
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Yes, both are the same, but they do have some difference between their functionabilities:D
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Well both concept is almost the same, When a trader opens a position, they are required to put up a fraction of that position’s value “in good faith”. In this case, the trader is said to be “leveraged”. The amount that is required to be put up is known as the “Margin Requirement”.
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© 2009 - 2019 ChatPips. All Rights Reserved. Risk Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in 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.