Margin investing is a borrowing method by which a forex investor can trade currencies at higher volume than he would be able to on his own. The intuition is simple: A forex investor sees an opportunity in the currency market that no one else does and wants to capitalize on this information. Ordinarily he would only be able to trade the money that he has in his forex account; however, if he is particularly confident that his investment will yield big returns based on shifting exchange rates, then he might want to borrow the extra money from hisforex broker.
By definition, trading on the margin for a particular currency trade is the equity percentage the trader must have (in the originating currency) with his broker in order to make a currency exchange.
By definition, trading on the margin for a particular currency trade is the equity percentage the trader must have (in the originating currency) with his broker in order to make a currency exchange.
