Margin is the amount of money a trader must deposit to open and maintain a trade. It acts as collateral or security to cover some of the risk associated with the trade, ensuring the broker is protected from potential losses.
Think of margin as a small fraction of the total value of your trade that you need to set aside. The rest is effectively "borrowed" through leverage, allowing you to control a larger position than your initial deposit.
To learn more about how margin works, including the concepts of Free Margin (available funds for new trades) and Margin Call (a broker's demand for additional funds to maintain open positions), visit this article on our website.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article