To invest in forex trading, the first thing you need is a forex trading account with a broker. The initial amount that needs to be deposited into this trading account will depend on the margin percentage agreed between you and the broker.
Standard trading is done on 100,000 units of currency. For this level of trading, the margin requirement would typically be from 1 – 2%. On a 1% margin requirement, the investor would have to deposit $1,000 to trade positions of $100,000. Effectively, the investor is trading 100 times his or her original margin deposit. The leverage in this case is 1:100. One unit controls 100 units.