There are several unique features in the forex market that attract investors,and margin trading is one of them.Buying or selling on margin means simply that the trader is getting "borrowed" money from is broker,in order to be able to buy more currency than would be possible only with their own resources.

The loan (leverage) in the margined account is collateralized by the initial margin (deposit).If the transaction value (position) drops enough, the broker will ask that more money is deposited,or a portion of your position is sold or even closed.

If we want to, for example, open a position in the value of 1,000,000 dollars, we need to invest only 10,000 (100:1), 20.000 (50:1) and 50.000 (20:1) dollars,respectively.This allows investors to transact amounts much higher than those deposited.Leverage existing in forex is a powerful tool in the potentiation of results - whether positive or negative.

Using leverage allows a significant margin to maximize the returns on profitable trades.After all, leverage means that you can be controlling coins worth 100 or more times the real value of your investment.

The margin is nothing more than this "loan." To open a position of $ 100 000 you need a margin of $ 1000.00 (in case your broker working on 100:1).When buying a lot, the normal margin required is only $ 1,000, for a total of $ 100,000 position (100:1).This margin is considered the margin standard,but can vary from broker to broker.

In the case of the Mini-Forex, it is possible to operate with margins ranging from $ 25 (400:1) and $ 100 (100:1) per lot, considering that each lot meets the $ 10,000.

Example: A lot of Mini-Forex, margin of $ 100.The investor buys 1 lot of EUR-USD to $ 1.1549.Sells the lot to $ 1.1649,with 100 pips profit.In this case the gain is $ 100, or 100% of its margin.With a Forex mini lot,each pip (0.0001) means $ 1 of profit or loss.

Much has been discussed on the "margin" and some say that too much margin may be too dangerous.This is a matter for each individual investor.The most important thing to remember is that with all the operations you must know in detail the policies of your broker and understand their risks.