Margin

Margin refers to the funds required to open a forex position and is considered a security deposit with the broker to uphold the position. Margins are a direct component of the leverage. Higher the leverage, lower are the margins and vice-versa.

For instance, if your broker offers a leverage of 100:1 to trade the EUR/USD pair, and you wish to trade a standard lot size of 100,000, your margin requirement would be $1000. On the contrary, if your broker offers a leverage of only 30:1 to trade the EUR/USD pair, and you wish to trade a standard lot size of 100,000, your margin requirement would increase to $3334 approx.