Question: What is Margin and How does it work? Any examples?
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Margin refers to the amount of capital needed to maintain an open position and is calculated based on the trade value converted into US Dollars (for US Dollar denominated accounts).
The percentage of margin required for any given trade will also be dependent on the leverage scale and corresponding margin percentage selected for the account.
For example, a leverage of 50:1 will have a corresponding margin requirement of 2% of the value of the trade size (value in USD of nominal trade amount).
By default, WorldWideMarkets Ltd. (WWM) offers 400:1 leverage on its Forex trading accounts.
