What Is a Margin?
If a trader were to trade an ETH CFD with a 20% margin requirement, a position worth $1,000 would require a deposit of $200.
A 20% margin will give 5x leverage; whereas, for example, a 5% margin would give 20x leverage.
While trading on margin lowers the cost of opening a trade, it can also be very risky, as it’ll amplify both the trader’s losses and gains, as CFD profits and losses are calculated on the full size of the trade.