information about leverage & margin concept

Asslam O Alikum;



hope you all are doing good!
dear traders aj ki post main forex trading ki 2 main terminologies ko study karegy
LEVERAGE
MARGIN

WHAT IS LEVERAGE?

Dear members leverage ko agr simple alfaz main bayan kia jy to ye aik type ka loan ha jo k brokers apko provide karty hain taa k ap zada peson ki trade kar k zada profit earn kar skn.
Agr leverage apko zada profit earn karny ka moqa dyti ha to sth sth zada nuqsan ka bhi chance hota ha q k risk reward ration aik sth barh jati ha.
Leverage ki differnt ratios hoti hain jo k brokers hamen ptovide karty hian jesa k
1:50
1:100
Kch brokers maximum 1:500 tk leverage provide karty hain jb k kch brokers 1:unlimited leverage bhi provide karty hain.

1:50 minimum leverage ha or es main apko apki equity ka 50times yeni k 50 guna loa dia jata ha js se ap trading kar skty hain or estra ap bari lot size use kar skty hain or zada trades open kr skty hain jiska faida bhi ha or nuqsan bhi.
estrha jitni leverage barhti jygi apki trading power barhti jygi.








laikin brokers ye funds srf apko trading k lye dety hain jb apki trades loss main jati hain to srf apka capital hi loss main jata ha broker ki trf se provide ki gai leverage koe capital ni hota jo loss ho jy bs ye aik pirchasing power hoti ha.


WHAT IS MARGIN?

Dear members margin bhi leverage ki hi aik type ha laikin es main ap k pany existing capital se apki buying power ko increase kia jata ha or ap at a time zada trades le skty hain.
margin or leverage aps main corelated hain ap jitni zada leverage use karen gy utna hi apka margin zada ho ga.
agr ap $100 deposit krtty hain or apki leverage 1:50 ha to apka margin $5000 ho ga eska mtlb ha k ap 1:50 ki leverage use kr k $100 se $5000 tk ki chez buy kr rhy hain.

Re: information about Leverage & Margin Concept

MARGIN AND LEVERAGE EXPLIANED?

Trading on margin is used to increase an investor’s buying power. An investor is required to put up only a fraction of the funds they would normally need in order to open a much larger position. This means rather than paying the full value of the position, you only need to pay a percentage of the position, which is called ‘initial margin’ Trading on margin can be beneficial, but also high-risk given the fact you can potentially lose your entire investment, if you are a Retail Client. Professional clients can lose more than their deposits and they may be required to deposit additional funds to cover their losses. Simply put, margin is the amount of money required to open a position, while leverage is the multiple of exposure to account equity. The amount of margin depends on the margin rate requirements. This differs between each trading instrument, depending on market volatility and liquidity in the underlying market.

• maarjin par treding ka upayog niveshak kee kray shakti badhaane ke lie kiya jaata hai. ek niveshak ko bahut badee sthiti kholane ke lie saamaany roop se aavashyak dhan ka keval ek ansh lagaane kee aavashyakata hotee hai. isaka matalab hai ki sthiti ke poorn mooly ka bhugataan karane ke bajaay, aapako keval sthiti ka ek pratishat bhugataan karana hoga, jise praarambhik maarjin kaha jaata hai, maarjin par treding phaayademand ho sakatee hai, lekin uchch jokhim bhee is tathy ko dekhate hue ki aap sambhaavit roop se apana kho sakate hain sampoorn nivesh, yadi aap ek khudara graahak hain. peshevar graahak apanee jama raashi se adhik kho sakate hain aur unhen apane nukasaan ko kavar karane ke lie atirikt dhan jama karane kee aavashyakata ho sakatee hai. seedhe shabdon mein kahen, maarjin ek pojeeshan kholane ke lie aavashyak dhan kee raashi hai, jabaki leevarej khaata ikvitee ke eksapojar ka gunak hai. maarjin kee raashi maarjin dar aavashyakataon par nirbhar karatee hai. yah baajaar kee asthirata aur antarnihit baajaar mein taralata ke aadhaar par pratyek treding instrooment ke beech bhinn hota hai.

1. The leverage ratio and margin requirements differ from broker to broker. The amounts typically offered are 100:1, 200:1 and 50:1. The leverage offered will also depend on the trade size of the position. A minimum margin requirement of 0.5% is the same as 200:1 leverage. A leverage ratio of 100:1 would be 1%.