Margin and leverage are the most critical factors in foreign exchange trading. You can directly apply to the platform to change the size of leverage. Simply put, leverage can make the total transaction amount larger than the total amount of funds initially invested by the investor. At the same time, investors need to deposit a margin for a position as a margin.
At the same time, margin is required as funds for opening an account and continuing to trade, not as fees or transaction costs. It is allocated from your deposit amount and reserved for your account. The size of the margin is usually a percentage of your trading amount (such as 2% or 5%). For example, if the margin ratio is 2%, the margin required for trading $1,000,000 is $20,000.
The use of leverage can magnify the actual transaction amount to maximize profits. Generally speaking, this means that investors can control the amount of currency that is 100 times or more of the actual investment value.
At the same time, this also means a potential trading problem that will affect investors. The effect of leverage will also amplify losses, and when the market changes, the increase in losses will be very large. If there is not enough margin, it will not be able to cope with the risks that come with it. If you have no trading experience or insufficient experience before, we strongly recommend that you consider your actual financial situation and choose a lower level of leverage. Because choosing high leverage and causing losses in the absence of experience is one of the most common mistakes made by novices.

If in yourEXAI TRADE If you have a balance of $10,000 in your trading account and the leverage is 100 times, and you only want to use 10% of your account balance, which is $1000, as a margin for a transaction, you can still trade $100,000 ($1000X100) because in this transaction,EXAI TRADE It provides you with a trading credit similar to a credit card, and this is the role of leverage. If leverage is not used in this transaction, you may only be able to trade $1000. So it can be said that the use of leverage makes it possible to make larger profits by using smaller investment amounts.

Since leverage can magnify both gains and losses, it is necessary to understand the risks of using high-leverage foreign exchange trading. Investors need to choose the appropriate leverage level according to their trading style requirements. Many foreign exchange traders use expert advisor (EA) as an automatic trading program. Many EA programs will also trade an appropriate amount of trading based on the account funds. However, not all EA programs have effective fund management tools, so it is still very important for traders to manually check the status of their trading accounts and add trading margin in a timely manner.