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What is margin and how does it work?

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What is margin and how does it work?

Margin is the amount of money needed in your account to maintain your market positions. It’s essentially a deposit required to open and maintain leveraged positions. If your account’s equity falls below the margin requirement, you’ll receive a margin call asking you to increase your equity to maintain your positions. If you cannot meet the margin call, your positions will be closed to prevent further losses.