In the Forex market, traders are able to trade on margin, which means that they can control larger positions with less capital. This is possible through the use of leverage, i.e. borrowing funds from a broker to increase a trading position. When using leverage, traders are required to maintain a certain amount of capital in their trading account, called the margin requirement. The margin requirement is a percentage of the total trade size and serves as a form of collateral to cover potential losses. Brokers, such as
broker finex, provide traders with leverage that allows them to open larger positions than their actual capital allows. The specific leverage ratios offered by brokers can vary, but usually range from 1:1 to much higher ratios such as 1:50, 1:100 or even higher.