Forex trading example 1: buying EUR/GBP
AUD/GBP is trading at 0.55951/0.55961.
You decide to buy $50,000 because you think the price of AUD/GBP will go up. AUD/GBP has a tier 1 of 3.33%, which means that you only have to deposit 3.33% of the total position’s value as position margin. Therefore, in this example your position margin will be $1665 (3.33%*50,000).