Forex & crypto

Margin

Margin is the amount your broker sets aside as collateral to open a leveraged position for you.

It is not a cost but a security deposit. At 10:1 leverage, $1,000 of margin lets you control $10,000. If your losses eat too much into that margin, the broker may trigger a margin call.

Example

For a $10,000 position at 10:1 leverage, your broker locks up $1,000 of margin.

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