OVERVIEW OF Leverage and Margin
What is Leverage Provided?
When you first create your MT5 account, one of the fields you are required to fill up is the leverage. We have the following range of leverages for you to choose from:
| Range of Leverages | Margin Percentage |
|---|---|
| 1:25 | 4 % |
| 1:50 | 2 % |
| 1:75 | 1.33 % |
| 1:100 | 1 % |
| 1:150 | 0.67 % |
| 1:200 | 0.5 % |
What is Margin?
Margin trading gives you the full exposure of a market using only a fraction of the capital you’d normally need.
Margin is the amount of money you need to open a position, defined by your leverage selected on account opening. The table below shows you the leverages we offer, and the percentage of margin needed for a trade.
There are 2 types of margins you’ll need to consider:
Initial Margin?
The initial margin is the minimum amount you’ll need to put up to open a position. It is also sometimes called the deposit margin, or just the deposit.
Maintenance Margin
The maintenance margin is the extra money that we might need to request from you if your position moves against you. Its purpose is to ensure you have enough funds in your account to cover the present value of the position at all times – covering any running losses.
Margin at The Forex Unit
At the Unit Markets, we offer a competitive range of leverage and margins across our full range of markets. Upon account opening, you will be prompted to select the leverage you’d like to trade on. Do bear in mind that the higher the leverage, the greater your profits and losses (and ultimately risk) will be magnified. Select the leverage that is best suited for your risk appetite.
