Regional Preferences

Agent Merina

Agent Merina

Dedicated Support Agent • Online
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Risk Management

Margin

The amount of money required to open and maintain a leveraged position. Sound risk management practices like this one are frequently cited by professional traders as the real dividing line between long-term survival and blown accounts.

Meaning

What Margin means

The amount of money required to open and maintain a leveraged position. Sound risk management practices like this one are frequently cited by professional traders as the real dividing line between long-term survival and blown accounts.

Trading context

Why it matters

Insufficient margin can lead to a margin call or forced position closure. For beginner traders in particular, grasping this concept early helps avoid common, sometimes costly misunderstandings further down the road.

Example

How traders may see it

Displayed as "used margin" and "free margin" on a trading platform. In practice, traders typically encounter this directly within their trading platform, charting software, or an economic calendar, depending on the specific context in which it arises.