Margin is the amount of capital a trader must deposit to open and maintain a leveraged trading position. It acts as collateral to cover potential losses and ensures that traders have sufficient funds to manage their trades.
How Margin Works
When trading with leverage, you don’t need to invest the full value of a position. Instead, you only need to deposit a percentage of the total trade value—this is your margin requirement. The higher the leverage, the lower the margin needed.
For example:
🔹If a broker offers 1:100 leverage, a trade worth $10,000 requires only $100 in margin.
🔹With 1:500 leverage, the required margin would drop to just $20.
Why Does Eurotrader Use Margin Trading?
At Eurotrader, margin trading allows clients to maximize their trading potential while maintaining flexibility in managing their capital. It provides traders with the opportunity to access larger positions in the market, increasing both potential profits and risks.
Our platform follows a dynamic margin model, where the required margin adjusts based on the volume of open positions. This system ensures efficient risk management while offering high leverage up to 1:500 for global clients and 1:30 for European traders, with the option to increase leverage by becoming a professional client.
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