Margin
The minimum required amount in order to open and hold the position in financial market .In contrast to fees and costs, margin is a part of a customer's account balance that is put aside for the purpose of placing an order.
Leverage
Our trading instruments are available with up to 1:500 leverage at FXTradium; nevertheless, traders should be aware that trading with the highest leverage may result in increased risks. The majority of our expert traders trade with a 1:50 leverage ratio, therefore it's critical to understand which leverage ratio is best appropriate for your trading strategies.
Margin and leverage relationships
When using less margin, larger leverage is necessary; nonetheless, our risk management department recommends that clients trade with the lowest possible leverage and only trade with 10% of their capital in order to stay within the safe zone of risk tolerance. For example, if your starting capital is just 1000 USD, it is advised that you obtain 100 USD in margin in order to avoid falling into a risk zone. For a more precise understanding of the connection between margin and leverage, you might use the formula provided below.
Margin = (Lot x Contract size ) / Leverage
