Trading-Made-Simple | Leverage and Margin
Welcome to our Trading-Made-Simple video series, where you can learn a little more about the trading world in less than 5 minutes.
“Leverage” enables a person to control a larger position with a smaller amount of money, while a “Margin” is the minimum amount of funds required to open and maintain that leveraged position. Both relate to each other but they have distinct meanings.
In this video, we will be covering:
0:00 The Meaning of Leverage and Margin
0:43 Example of Leverage & Margin
1:22 The Use of Leverage & Margin
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Trading involves risk. Past performance is not indicative of future results. Trade with caution.