How Much Leverage Is Needed For $10 Deposit?

For a $10 deposit, you can use the maximum leverage provided by your broker. The following is an example of margin calculation if you trade EUR / USD for 0.01 lot at a price of 1.1300, using the 1: 1000 leverage setting. Meanwhile, before we continue, you can go to http://www.cnie.org/highleverage/ecn-brokers-with-high-leverage.html if you’re looking for popular brokers with high leverage.

Here’s the example for you:

Margin = (Contract Size X Lot X Running Price) X Leverage
Margin = (100000 X 0.01 X 1.1300) X 1: 1000
Margin = (1130): 1000
Margin = 1.13

So, with a leverage of 1: 1000 and you open a 0.01 lot position on the EUR / USD pair, the required margin is $ 1.13. The known margin is $ 1.13, so the free margin after opening the position is $ 8.87 ($ 10 in capital minus $ 1.13 in margin). So, this free margin is used as the security of your funds.

After knowing the resilience of the fund, then the resilience of the fund is converted into pips in order to find out how many pips it can hold. The pip value for the EUR / USD pair is $ 10 per 1 lot. Meanwhile, if you trade with a volume of 0.01, then the pips value is $ 0.1. That way, an $ 8.87 fund hold can hold a minus ~ 88.7 pips of floating (free margin $ 8.87 divided by a pip value of $ 0.1). That is, if you open a buy position for 1 lot at 1.1300 and then the price drops by 88.7 pips or touches the price of 1.1211, then that price point your trading is stopped because your funds have run out.

That’s more or less an illustration of the calculation of margin and resilience of funds. The calculation simulation done above is only an illustration to make it easier to understand. The actual calculation results regarding the amount of fund hold may be different (it could be more or less), given the implementation of margin calls and stop out levels from brokers.

As a conclusion and advice from us, if you really intend to try trading with a capital of $ 10, then you can try the maximum leverage setting provided by your broker.