Margin

Updated 2026-09-20

Definition

The amount the broker sets aside in your account to keep a leveraged position open. It isn't a cost: it becomes available again on closing.

Why it matters

It is calculated as position value divided by leverage. Free margin is what's left for new trades and to absorb losses: if it falls too far, a margin call looms.

Practical example

1 lot of EUR/USD at 1.1000 with 1:30 leverage needs about (100,000 × 1.10) ÷ 30 = $3,667 of margin.

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Educational content, not financial advice. Trading involves risk.