This was a profit from the Forex trade modern, because by capital smaller you could get the value of the transaction that bigger.

Many traders consider leverage dangerous because traders add bigger position sizes without actually owning them. Nevertheless, leverage is an exceptionally good tool that can be utilized to increase your buying power as long as trader has a risk management plan associated with it. Some seasoned currency trader harness leverage effectively in currency trading. They apply small leverage to test the market sentiment. Once the strategy works with small position size and leverage, they then multiply leverage quickly to maximize profit potentials.

The margin was the value of the guarantee when you will carry out a transaction, and the size was 1% from quantity contract size that was traded in by you.

This was significant when you want to transaction in an amount certain (quantity) then you must guarantee as big as 1% him (the example: you trading in quantity $10000, then your account would automatically guarantee as big as 1% him, that is $100 from your capital that $500 this), because to confirm and guarantee that you had the fund that was enough to transaction in this number, and when evidently was not enough the fund then your transaction would automatic was refused. But after your transaction was finished then the margin (the guarantee) you this will be returned again to you like originally

Why Margin Requirement Matters?

Leverage is a double-edged sword. With proper usage, it can enhance customers' funds to generate quick returns and increase the potential return of an investment. However, without proper risk management, it can lead to quick and large losses.

Most forex trading firms offer customizable leverage; traders can choose the leverage ratio they feel most comfortable with. Customers should be aware of how to guard against over trading an account and managing overall risk.