Margin

What is the margin?

A margin is the amount that the trader has to deposit as collateral with the issuer. This is an integral part of a financial transaction when trading in leveraged products. The lower the margin requirement, the higher the leverage. A required minimum amount must be available in an account for the trader to be able to trade at all. If the trader can no longer cover their margin for their open positions, a margin call will happen. The trader will then be asked to top up the necessary capital and close positions if necessary.