FX margin trading

Trading currencies on a deposit worth a fraction of the position

In detail

FX margin trading lets you buy or sell an amount of currency many times larger than the deposit you put up. The cap on retail leverage is set country by country. Moving a large sum on a small deposit magnifies losses by exactly the same multiple when the market goes the other way. If the deposit no longer covers the position, it is closed out automatically.

Example

At 25 times leverage, a deposit of $40,000 supports a position of $1,000,000.

Differences by country

Japan — In Japan retail FX leverage is capped at 25 times.

South Korea — Korean FX margin trading covers only pairs without the won, and each lot of 100,000 base-currency units needs at least $10,000 of margin — roughly 10 times leverage. The maintenance margin is at least half of that (as of 2026).

Related terms

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.