How to calculate Required Margin and Leverage

Leverage reflects the amount of a traders own funds (margin) required, in comparison to the size of the position they wish to open (1:1000, 1:500, 1:100, 1:50, 1:20, 1:10, 1:2). Margin is the amount of a trader’s own funds that are required to open a position. Required Margin to open a position = Value of the trade / Leverage Lets take a look at an example of a leveraged trade:

A trader wants to buy a position of 1 Bitcoin worth $9,000, with x100 leverage (i.e. 1:100 leverage) To open this position, the Required margin = $9,000/100 = $90 (0.01 BTC) As seen from this example, to open a position of 1 BTC/USD at the price of $9,000 at x100 leverage, a trader would need to have at least $90 (~0.01 BTC) worth of funds in their account. To simplify this process, a 'Margin Impact' indicator is available in the 'New Order' form, as shown in the screenshot below. Margin Impact indicator automatically calculates and reflects the amount of margin required to open the selected position.