Margin and free margin in Forex, theory
Each broker requires a different margin, and it is very important to understand everything about margin before choosing any broker and starting your journey to “margin trading”. But margin trading also has different implications. For more information, you can also read forex training on one of the best forex broker review sites. This can certainly affect the trading results or the outcome, which can be positive or negative, and there will be potential gains and losses as they are greatly increased. Let's take a look at an example. Let 's say a broker offers 1:25 leverage for Forex trading. The leverage offered means that for every 25 currency units in any open position, only 1 currency unit is required as margin. If we put this into the calculation in dollars, if the amount of your interested open position is $ 25, the margin will be only $ 1. So, according to this example, the margin would be equivalent to 1/25 or 4%.