You already know about lot size in the Forex trading. In the Forex market you or anyone trading currency with a small deposit of money. But with a small portion of money or capital how you buy or sell 1 Standard lot (100,000 units or $100,000)?
Suppose your broker act as a bank they just allowed you a trade 1 Standard lot by deposit of a specific amount of money. The rest money lends you for trading it is called leverage. And the initial deposit for trading 1 Standard lot this money is called Margin or initial Margin. It is vary from broker to broker. Suppose you see a broker website information at 100:1 (1% Margin required) deposit mean you have to deposit $1000 and if you want leverage then trade 1 standard lot your broker will lend you $90,000 for you ( $1000*leverage100 = $100,000 )
Suppose your broker act as a bank they just allowed you a trade 1 Standard lot by deposit of a specific amount of money. The rest money lends you for trading it is called leverage. And the initial deposit for trading 1 Standard lot this money is called Margin or initial Margin. It is vary from broker to broker. Suppose you see a broker website information at 100:1 (1% Margin required) deposit mean you have to deposit $1000 and if you want leverage then trade 1 standard lot your broker will lend you $90,000 for you ( $1000*leverage100 = $100,000 )
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You are always welcome and thanks a lot.