Leverage and Margin

Leverage and Margin

You can trade Forex and CFDs on leverage. This can allow you to take advantage of even the smallest moves in the market. When you trade with VIG Investment, your trades are executed using borrowed money. For example, 100:1 leverage allows you to trade with $10,000 in the market by setting aside only $100 as a security deposit. All new accounts are defaulted to 100:1 leverage on FX and CFDs. The leverage on your account will then be adjusted based on the equity in your account. VIG reserves the final right, in its sole discretion, to change your leverage settings.

Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. The amount of margin that you are required to put up for each currency pair varies by the leverage profiles listed above.