Does leverage decrease the margin requirement when opening a trade?

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momox
149
momox  
If I have a certain balance in my account, when trading with UK100 for example, will having 1:500 leverage reduce my margin requirement for the trade rather than 1:50 leverage?

I already know what leverage does but I just want to know if it decrease margin required for a trade. 
Mohamad Zulhairi Baba
15886
Mohamad Zulhairi Baba  
momox:
If I have a certain balance in my account, when trading with UK100 for example, will having 1:500 leverage reduce my margin requirement for the trade rather than 1:50 leverage?

I already know what leverage does but I just want to know if it decrease margin required for a trade. 

Inversely Proportional.
the higher the leverage, lower the margin requirements (vise versa)

Tafadzwa Nyamwanza
369
Tafadzwa Nyamwanza  
Mohamad Zulhairi Baba:

Inversely Proportional.
the higher the leverage, lower the margin requirements (vise versa)

Depends on the balance, how much is it?
Keith Watford
Moderator
13956
Keith Watford  
Tafadzwa Nyamwanza:
Depends on the balance, how much is it?

It does not depend on the balance, margin requirement are bound by the leverage and the position size.

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