What is Leverage ?

One of the reasons why forex trading is so much popular than other instruments trading is due to the low margin requirements and high leverage. Leveraged trading refers to the process whereby investors can buy or sell more than what they can afford to. Leverage is expressed as a ratio, for example 10:1, 50:1, 100:1 & 200:1. Assuming that you have $1000 in your trading account, with leverage of 200:1, you can trade with contract size of $200, 000. At Coinexx, we offer flexible leverage up to 500X, traders have the option to choose any leverage up to 500X to suit their trading requirements.

What is Margin?

Margin is the amount of collateral required to hold or open a position. Margin is generally expressed as a percentage of the amount of position size. You might often hear that to open a position you need 5%, 4%, 2% or 1% as margin requirement. If the margin requirement is 2%, it means you only need 2% of the total position amount size.