Margin is the amount of money you must set aside to open and maintain a leveraged trade. It is not a fee but a good-faith deposit held by the broker. The smaller the margin relative to the position size, the higher the leverage — and the higher the risk.
Forex Term
Margin
The deposit required to open a leveraged position.
Example
A position needing $500 of margin lets you control a much larger trade using leverage.
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.