What are typical FOREX margin requirements?
Currency positions can be leveraged at various amounts depending on your broker. Tradesteps4x uses a dealer that allows 400:1 margin. This means that a .25% margin deposit allows you to control $100,000 one-lot position in the currency market (trades are executed in standard units of 100,000 of the base currency, commonly referred to as “lots”.) Futures traders, who are accustomed to margin requirements generally equal to 5% – 8% of the contract value, will immediately recognize that the currency market allows much greater leverage than the futures markets. But be careful – leverage can be a double-edged sword, and without proper risk management, the market may move against you and result in the loss of all your trading capital.
