Required margin is not the risk on a trade — it is the collateral the position holds hostage. The number that decides whether you get liquidated is the margin level underneath it.
| Leverage | Margin requirement | Margin on a $100,000 position |
|---|---|---|
| 1:30 | 3.33% | 3,333.33 USD |
| 1:50 | 2.00% | 2,000.00 USD |
| 1:100 | 1.00% | 1,000.00 USD |
| 1:200 | 0.50% | 500.00 USD |
| 1:500 | 0.20% | 200.00 USD |
The share of a position's value your broker sets aside as collateral while it is open. At 1:100 leverage a $110,000 position holds $1,100. That capital is not lost — it is unavailable until the position closes.
The multiple between position value and margin. It changes how much collateral a trade consumes; it does not change how much you lose per pip. Position size does that — leverage only decides how many positions you can hold at once.
Margin level = equity ÷ used margin × 100. Most brokers warn near 100% and force-close somewhere around 50%. A high margin level means room to breathe; below 150% a normal adverse move can start closing positions for you.
Equity minus used margin — what is actually available for the next position and for absorbing open losses. When free margin approaches zero you are one bad tick from a forced exit, regardless of how good the thesis was.
PipSync is a signal execution tool. It does not provide trading signals, does not guarantee any trading results and is not investment advice. Trading leveraged products involves substantial risk of loss.