In the financial sector, leverage is like a double-edged sword, which can make us stronger financially, but it can also make us more vulnerable in market storms. Just like on the stage of FOREX, the minimum leverage that customers can choose is 50 times, which is like a cup of peaceful tea, which can reduce our risk in trading. However, even if the same leverage level is chosen, the margin required for different instruments can vary widely.
As an example, let's say we choose 50x leverage, let's take a look at the margin required for the same lot size for some common symbols. The margin for EURUSD, GBP/USD, AUD against USD, USD/JPY, US 30-year Treasury and US is 2089 respectively$48, $244716 dollars, 137976 USD, 2010$1, 36656 dollars, 60721 dollar and 205$82. This means that even if we choose a lower leverage, we still need to have sufficient margin to protect against market volatility.
It is especially important that the margin requirement is directly proportional to the number of lots we hold and the number of trading instruments. In short, the higher the symbol, or the larger the lot size, the required margin will also increase. Therefore, it is important to reasonably control the number of positions and ensure that the account has sufficient free margin to withstand market fluctuations while choosing lower leverage. In general, choosing the right leverage can help us reduce trading risk, but it is also important to control the number of positions and have sufficient margin.