Forex trading example 1: buying EUR/GBP
EUR/GBP is trading at 0.84950 / 0.84960.
You decide to buy €20,000 because you think the price of EUR/GBP will go up. EUR/GBP has a margin rate of 3.34%, which means that you only have to deposit 3.34% of the total position value as position margin. Therefore, in this example your position margin will be £567.50 (3.34% x [€20,000 x 0.84955]).
Remember that if the price moves against you, it is possible to lose more than your investment of £567.50.