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leverage offers the ability to trade a larger amount of money with a relatively smaller capital base for example if you deposit $100 in your FX trade account you can open a trade with the value of $1,000 if your account leverage is 10 to 1 simply put a 10 to 1 leverage means you can trade with 10 times your deposited capital in trading leverage is usually expressed as a ratio which can be selected by you letamp;#39;s look at an example if the leverage is 50 to 1 then the minimum required margin is 2% of the total transaction this means that you are required to maintain a minimum cash balance in your account equal to 2 percent of the full trade value you must also have this margin requirement available as cash before you can place the trade as you can see here the lower the leverage ratio the higher the margin requirement becomes using a ratio of ten to one as an example this means it is possible to enter into a trade value of ten dollars for every one dollar in your account this is wh
