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Margin Requirements

Trading on Margin (Trading with Leverage) is a common attraction of the forex market. It allows you to open trades that are larger than the capital in your account. Example In the example above, $1,000,000 have been purchased through a long…

When you use excessive leverage, a few losing trades can quickly offset many winning trades. To clearly see how this can happen, consider the following example. Scenario: Trader A buys 50 lots of USD/JPY while Trader B buys 5 lots of…