Margin requirement

The margin requirement is the key point in the forex margin trading. That stands for the deposit required in advance to take some positions. This amount determines the leverage ratio. Assuming that you should take 0.1 million USD position that is almost equivalent to 12 million JPY, the leverage itself differs from each other whether 0.1 million JPY is required or 0.2 million for the margin requirement. Needless to say that the fewer amount of margin requirement results in the higher leverage you can enjoy.