Leverage & Margin - Trading on Margin

Leverage trading, or trading on margin, means you aren't required to put up the full value of the position. As a result, you can open a significantly larger position that you would be able to if you needed to fund your trade in full. Trading on leverage increases your potential for profit, but also increases your risks.

Forex trading offers leverage up to 200:1, This means that for every £1 in your account, you can trade £200 worth of a position.

FOREX.com: No debit balances, no margin calls

At FOREX.com, your risk is limited to funds on deposit. There are no margin calls in Forex trading. You need to maintain sufficient funds on your account to keep your positions open, and you will not be able to open larger positions than can be supported by your account balance. If your account falls below the required level to maintain your position(s), we will automatically close out all positions to ensure that you can't lose more money than you have in your account.

More leverage means more opportunity - and more risk

Trading using leverage offers significantly increased profit potential, but it is important to remember that it also means significantly increased risk. Your risks can be limited by monitoring your account, and by using stop losses to set the maximum loss you are prepared to take on any one position.

Forex quotes

Profit and loss

Material taken with permission from Forex.com. Adaptation - International Trading School d.o.o. Beograd