The amount of money a trader needs to initiate a new position is known as the margin. The size of your trade, which is expressed in lots, determines the anticipated margin. A typical lot consists of 100,000 units. Mini lots (10,000 units), micro lots (1,000 units), and nano lots (100 units) are also available from us. The margin amount increases with the size of the lot. With the use of margin, you can trade with leverage and make trades that are bigger than your trading capital. The margin amount is also impacted by leverage.

What is leverage?

Leverage is the ability to trade positions larger than the amount of capital you possess. This technique allows traders to use extra funds from a broker in order to raise the size of their trades. With a 1:100 leverage ratio, for instance, a trader with a $1,000 account deposit can trade with $100,000. Leverage puts traders' capital at risk by magnifying their potential losses even though it allows them to raise the amount of their trades and, therefore, their potential rewards.