Margin

Fundamentals

The portion of your funds a broker holds as collateral to open and maintain a leveraged trading position.

Margin is the portion of your own funds a broker sets aside as collateral to open and maintain a leveraged position — it isn't a fee, but a good-faith deposit held from your account balance. The margin required is calculated from the position size and the leverage offered (e.g. 1% margin corresponds to 100:1 leverage). If your account equity falls too close to the required margin, you risk a margin call or automatic position closure.

Related terms

Drawdown Leverage Margin Call

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After Margin

CalculatorMargin CalculatorCalculate the margin required to open a position at a given leverage, before you place the trade.GuideMargin Calls and Stop-Outs ExplainedBalance, equity and margin level explained — how a margin call differs from a stop-out, which position closes first, and when a gap outruns the system.

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