Leverage and exposure
A smaller amount of margin can support larger exposure, but profit and loss from price changes depend on the exposure. Leverage amplifies gains and losses.
An illustrative calculation
For a hypothetical exposure of 10,000 with 1:10 leverage, a simple initial margin example is 1,000. This illustrates the concept and does not represent actual Strader terms.
When margin becomes insufficient
Losses or changes in conditions can reduce available margin and trigger a margin call or close-out. Check the actual product rules.
This guide explains trading concepts and is not investment advice. Product terms and availability are set out in formal documents.