The forex margin trading has the great characteristics, so this is the high leverage. Assume that the mortgage loan when to borrow money from the bank. You can borrow some money within the collateral value of your land. If your collateral is worth about ten million Yen, it makes you possible to raise the fund up to 10 million JPY. If there is no need to raise, you have only to borrow money you need for the present, and it indicates there is more room to raise fund by borrowing money up to remaining 9 million JPY when you feel like.
The leverage mentions to the biggest possible amount of your position carrying in the forex margin trading. It shows how much times the margin allow you to trade. The margin requirement is indicated how much money you are required in advance to trade for each currency pairs, like USD-JPY, EUR-USD, GBP-USD. For example, 2,000 or 5,000 USD would be required for trade per 0.1 million USD. The smaller margin requirement follows the higher leverage ratio, needless to say.
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