What is a leverage calculator?

A leverage calculator is a tool that helps traders calculate the margin requirement based on their leverage ratio. One of the most important aspects of risk management in leveraged trading is to be able to calculate your own margin requirement for each position you open in any leveraged product.

How to calculate margin based on leverage ratio?

To calculate your margin based on your leverage ratio when trading, follow these steps: Insert the currency pair you are trading. Select the deposit currency of your choice. Choose the leverage ratio you are going to use. Add the position size in units. Select the price of the trading pair or leave it to show the market price. Click calculate!

What is a common leverage ratio?

Common leverage ratios include the debt-equity ratio, equity multiplier, degree of financial leverage, and consumer leverage ratio. Banks have regulatory oversight on the level of leverage they are can hold. What Does a Leverage Ratio Tell You? Too much debt can be dangerous for a company and its investors.

What does a 1:1500 leverage account mean?

This thing means that you are multiplying the balance of the account by the factor in order to give more than the buying power. For Example, if you are having $10 thousand dollars in the account. In addition, the broker is going to give you 1:1500 leverage for trading. In this case, it means that you will be able to trade almost $150,000.