The minimum lot for trading in the FOREX market is 100,000 units of a currency. This doesn’t mean you have to have this amount in your account with FOREX First. All you need in your account is just a fraction of the sum (e.g. $2,000), while FOREX First will loan the rest to you. If you open and close your position within one day, this loan will be free of interest charges. The loan is not credited into your account and you can only use it for trading in the FOREX market. The ratio of the sum you are using for trading (including the loan) to the security amount required by the dealer is called Leverage.
In the foregoing example, when you are trading the lot of 100,000 USD/CHF, the dealer requires a security deposit of $2,000 and your Leverage would be (100,000/2,000) = 50. This deposit required to enter a trade is called Margin.
