Regulated by the
Market
Margin And Leverage
| Seven Star Brokers Ltd provides: |
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| Leverage |
| Leverage is the ability to control a large amount of money in the forex markets, with a much smaller deposit. For instance, if a forex broker offers 50:1 leverage, that means for every $1 that is in your account, you can trade $50 on the forex market. Seven Star Brokers Ltd provides leverage up to 500:1 |
| Margin |
| Margin is the amount of money needed as a "good faith deposit" to open a position with your broker. Margin is usually expressed as a percentage of the full amount of the position. For example, most forex brokers say they require 2%, 1%, .5% or .25% margin. |
Margin required: This is an easy one because we just talked about it. It is the amount of money your broker requires from you to open a position. It is expressed in percentages.
Account margin: This is just another phrase for your trading bankroll. It's the total amount of money you have in your trading account.
Usable margin: This is the money in your account that is available to open new positions.
Margin call: If your open losing positions drop beyond your usable margin levels, a margin call will occur and some or all open positions will be closed by the broker at the market price.
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