Why trade on margin?
Trading on Margin (Trading with Leverage*) is a common attraction of the forex market. It allows you to open trades that are larger than the capital in your account. Example In the example above, $1,000,000 have been purchased through a long USD/JPY position with a $50,000 account balance (20:1* Leverage). Trading on margin can both positively and negatively affect your trading experience as both profits and losses can be dramatically amplified.