Forex is short for foreign exchange. The forex market is a place where currencies are traded. It is the largest and most liquid financial market in the world with an average daily turnover of 6.6 trillion U.S. dollars as of 2019. The basis of the forex market is the fluctuations of exchange rates. Forex traders speculate on the price fluctuations of currency pairs, making money on the difference between buying and selling prices.

Margin is the amount of a trader’s funds required to open a new position. It is estimated based on the size of your trade, which is measured in lots. A standard lot is 100,000 units. We also provide mini lots (10,000 units), micro lots (1,000 units), and nano lots (100 units). The greater the lot, the bigger the margin amount. Margin allows you to trade with leverage, enabling you to place trades larger than your actual capital. Leverage also affects the required margin.

Leverage is the ability to trade positions larger than the capital you possess. It allows traders to use borrowed funds from a broker to increase their trade size. For example, 1:100 leverage means that a trader with $1,000 can control a position of $100,000. While leverage can increase potential profits, it also magnifies potential losses, putting capital at risk.