3 Responses to “Does trading Forex have the same day trading margin requirements as equities?”

1. JohnGalt Says:
   April 24th, 2010 at 3:05 am

   No. Maximum leverage in stocks is 50% (2 to 1). In forex it can be as low as 0.2% (500 to 1)

2. msc Says:
   April 24th, 2010 at 3:50 am

   In addition, Forex doesn’t have any of the restrictions, such as pattern day trading, free-riding, or uptick rules.

   And in Forex, if you get a margin call, the broker won’t ask you to deposit more money. Their system will instantly close your positions.

3. Suzane P Says:
   April 24th, 2010 at 4:36 am

   No, The concept of leverage increases the trader’s initial investment, or margin, by hundreds of percent. This initial sum is considered a deposit in “good faith” which establishes the ratio of leverage, and helps the trader withstand his losses, which, in any case, cannot be higher than the sum of the margin. A $100 deposit would give the trader $20,000 or more in margin on the various Forex Platforms.

   See ya

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