Back to Glossary
Margin
Forex Basicsbeginner
Updated 1/15/2024
Definition
Margin is the deposit required to open a leveraged position. It's expressed as a percentage of the total position size. For example, 1% margin means you need $1,000 to control a $100,000 position.
Example
To open a $100,000 EUR/USD position with 2% margin requirement, you need $2,000 in your account as margin.
Related Calculators
Tags
#basics#capital#requirements
Related Terms
Leverage
ForexLeverage allows traders to control larger positions with smaller amounts of capital. It's expressed ...
Margin Call
ForexA margin call occurs when your account equity falls below the required margin level, typically 100%....
Free Margin
ForexFree margin is the amount of money in your account available to open new positions. It's calculated ...
Browse All Terms
4 of 66 terms