 | Posted 5th June 2010 at 01:26 AM by emcfx
Written by Emerging Market Capital FX (EMCFX.com) What are margin requirements? A margin is a small deposit, which allows you to leverage a large contract (unit or lot) size and all this will depend on the clearinghouse. In the forex market, each clearinghouse has one or multiple margin requirements. For example, 1% (100:1 ratio) or 2% (100:1 ratio) margin based on a $100,000 balance would either be $1,000 margin or $2,000 margin. This means 1 unit is $1,000 margin or 5 units is $5,000...
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