{"id":378,"date":"2025-04-14T14:14:56","date_gmt":"2025-04-14T14:14:56","guid":{"rendered":"https:\/\/oneroyal.academy\/?p=378"},"modified":"2025-05-26T06:51:09","modified_gmt":"2025-05-26T06:51:09","slug":"what-is-the-difference-between-leverage-and-margin-requirement","status":"publish","type":"post","link":"https:\/\/www.oneroyal.academy\/en\/faqs\/what-is-the-difference-between-leverage-and-margin-requirement\/","title":{"rendered":"What is the difference between Leverage and Margin requirement?"},"content":{"rendered":"

Leverage and Margin are similar in nature but state a different point of view.<\/p>\n

Leverage intends to show someone\u2019s Buying power with a given amount of Funds, while Margin states the Funds needed to open or sustain a position open.<\/p>\n

Leverage \u2013 Example:<\/strong><\/p>\n

With a 1:100 Leverage and 1,000 USD in your balance, you can open a trade with a size of 100 times bigger than your balance.<\/p>\n

In that case, you\u2019re able to open a trade of 100,000 USD.<\/p>\n

Margin \u2013 Example:<\/strong><\/p>\n

Margin is the amount needed in your balance to open a trade of a given Size.<\/p>\n

So, if you want to open a trade of 100,000 USD with a margin requirement of 1%, you then need to have at least 1,000 USD in your balance.<\/p>\n

Margin is stated as a percentage while Leverage is stated as a ratio, but they basically show the same thing.<\/p>\n\n\n\n\n\n\n\n\n\n
Leverage<\/strong><\/span><\/span><\/td>\nMargin<\/strong><\/span><\/span><\/td>\n<\/tr>\n
1:500<\/strong><\/span><\/span><\/td>\n0.2%<\/strong><\/span><\/span><\/td>\n<\/tr>\n
1:200<\/strong><\/span><\/span><\/td>\n0.5%<\/strong><\/span><\/span><\/td>\n<\/tr>\n
1:100<\/strong><\/span><\/span><\/td>\n1%<\/strong><\/span><\/span><\/td>\n<\/tr>\n
1:50<\/strong><\/span><\/span><\/td>\n2%<\/strong><\/span><\/span><\/td>\n<\/tr>\n
1:30<\/strong><\/span><\/span><\/td>\n3.33%<\/strong><\/span><\/span><\/td>\n<\/tr>\n
1:10<\/strong><\/span><\/span><\/td>\n10%<\/span><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

Leverage and Margin are similar in nature but state a different point of view. Leverage intends to show someone\u2019s Buying power with a given amount of Funds, while Margin states the Funds needed to open or sustain a position open. Leverage \u2013 Example: With a 1:100 Leverage and 1,000 USD in your balance, you can […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[10,15],"tags":[],"class_list":["post-378","post","type-post","status-publish","format-standard","hentry","category-faqs","category-trading"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts\/378","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/comments?post=378"}],"version-history":[{"count":1,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts\/378\/revisions"}],"predecessor-version":[{"id":379,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/posts\/378\/revisions\/379"}],"wp:attachment":[{"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/media?parent=378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/categories?post=378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oneroyal.academy\/en\/wp-json\/wp\/v2\/tags?post=378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}