What is a leverage calculator?

A leverage calculator is a tool that helps traders calculate the margin requirement based on their leverage ratio. One of the most important aspects of risk management in leveraged trading is to be able to calculate your own margin requirement for each position you open in any leveraged product.

What does 1:100 leverage mean in forex?

What does 1:100 leverage in Forex mean? If you open an account with $100 and have a leverage of 1:100, this means you have a trading margin of 100*100=$10,000. This could be used to open multiple trades or a single trade, depending on the trade size, while the sum of all used margin cannot go over $10,000. How much margin do I have in my account?

What is a 10x leverage ratio?

This means that you multiply your deposited money 10 times. Your maximum position size with a 10x leverage ratio would be $2000 if your initial investment was $200. You can use ratios the other way around and calculate how much money you would need to deposit in order to open a position size.

What is forex leverage?

Leverage is investing money with borrowed funds. Unlike a regular trade where you purchase a $10 item with $10, in Forex you can use leverage to buy (or sell) the same value with less funds, for example buy $10 with $1 margin (10:1 leverage).