1. What is leverage and margin?
The leverage of contract trading lies in the margin system. You don’t have to pay 100% of the assets when you make contract trading. To buy/sell the contract, all you have to pay is a small amount of money calculated based on a certain ratio. And that money is called a margin. It highly improves your assets utilization rate and brings much greater profits as well as higher risks.
2. What is the relationship between leverage and margin?
The higher leverage you use, the less margin you’ll need to pay.
Dec. 20, 2019