Margin is the amount of money a trader must deposit with a broker to open a leveraged trading position.

It acts as collateral for the borrowed funds used in leveraged trading.

🔎 How does Margin work?

When trading with leverage:

• You only need to deposit a percentage of the total trade value

• The broker provides the remaining funds

• Margin ensures you can cover potential losses

For example:
If leverage is 1:100, you may only need 1% of the total position value as margin.

📌 Important Points

• Margin is not a fee — it is a portion of your funds set aside to maintain open positions

• If your account equity falls below required levels, you may receive a margin call

• Positions may be closed automatically if your margin level reaches the stop-out level

  
  

⚠️ This content is provided for informational purposes only and does not constitute investment advice. Trading with leverage involves risk.