What's Margin Indices Trading?

What is Margin Indices Trading Account?

The definition of Indices Trading Leverage is having the ability to control a large amount of money using very little of your own money and borrowing the rest - this is what makes the stock indices trading market to attract many investors.

We shall explain indices leverage first and then explain indices margin in this learn how to calculate stock indices trading leverage & indices trading margin course.

Example:

We shall us this example to explain what indices leverage is? If your indices broker gives you stock indices leverage of 100:1 (this is the best option to select as a maximum for any account)

This means you borrow 100 dollars for every dollar you have in your stock indices trading account.

To put in another way your indices broker gives you 100 dollars for every 1 dollar in your account. This is what is known as stock indices trading leverage.

This means if you open an account with $1,000 & your stock index leverage is 100:1, then you get $100 for every $1 you that you have in your indices account, the total amount which you will control is:

If for 1 dollar the broker gives you 100

Then if you have 1,000 you'll get a total of:

$1,000 * 100 = 100,000 dollars

Now you control 100,000 dollars of Investment

Most new indices traders ask what stock indices leverage is best stock indices leverage for 1,000 dollars, or 2,000 dollars, or 5,000 dollars indices trading account? - The best stock indices leverage option to select when opening a live stock indices trading account is always 100:1 & not 400:1.

What's Indices Trading Margin?

This is the amount of money required by your index broker so that to allow you to continue trading with amount borrowed.

In other words the question what's indices trading margin in Indices Trading? can be described as the money required to cover open stock indices trades & is expressed in percent. For 100:1, the amount you will control is 100,000 dollars as described in the above examples.

Now can you compare a investor investing $1,000 with another one that is investing $100,000? Obviously Not. This is how it works: it takes you from that retail investor investing $1,000 to that investing $100,000. Where does this extra cash come from? - You borrow it from your indices broker in what is simply referred to as Stock Indices Trading Leverage. This money that you borrow, you borrow it against the $1,000 dollar of your own money that you deposit with your stock indices trading broker. If you were to explain what this indices trading leverage means - then it is ability to control a large amount of money using very little of your own money and borrowing the rest. Otherwise, if you were trade Indices Trading without this indices trading leverage it would not be as profitable as it is, in fact you can still choose not to use stock indices trading leverage, using the 1:1 leverage option but you would not make money and it would take too long to make any profit.

Example of how to calculate stock indices trading leverage & indices trading margin:

Margin required in this case is 1,000 dollars (your money) if it's expressed as a percent of 100,000 dollars which you control it is:

If leverage = 100:1

1,000 / 100,000 * 100= 1%

Margin required = 1%

(1/100 *100= 1%)

'Trade Forex Trading - Please simplify because I am Beginner'

(Simplify - your capital is $1,000 after stock indices leverage you control $100,000 - $1,000 is what percent of $100,000 - it is 1%) that is your indices trading margin requirement for your stock indices trading account.

What is Margin Indices Account? - What is Margin Indices Trading? - How to Calculate Indices Trading Margin - Indices Margin Calculation - What is Margin Indices Account? - What is Free Indices Trading Margin Level in Indices Trading? - What is Used Indices Trading Margin Level in Indices Trading? - What is Margin in Indices Trading?