Margin

Margin is the amount of money a trader needs to deposit to open and maintain a leveraged trading position. It acts as a security deposit that allows traders to control a much larger position than their actual account balance. For example, if a broker offers 1:100 leverage, a trader can open a $100,000 position with just $1,000 in margin.

Margin is not a fee or cost—it’s simply the portion of your funds set aside by the broker to cover potential losses. The required margin depends on the size of the trade and the leverage used. If the market moves against your position and your equity falls below a certain level, you may receive a margin call. This call asks you to deposit more funds, or you risk having your position closed.

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