What is a leverageand who provides it? What is the principle of margin trading?
Margin trading means that for the trader it is not obligatory to have the whole sum of the contract. It is enough to bring the mortgage (margin), which usually makes 1-2 % of the necessary sum. The missing amount will be given to you by bank through which you will make transactions in the Forex market. In slang of currency traders it is referred to as “granting of a leverage” So, to purchase a 100,000 dollars for Japanese yens at a leverage 1:100 it is necessary to bring only 1 000 dollars as a marginal deposit.
