Margin is the portion of your balance that the broker sets aside as a deposit while a leveraged position is open. It is not a fee and not a minimum account size; it is locked for the duration of the trade and released when the position closes. The amount required depends on the position size and the leverage the broker applies to that instrument.
Forex glossary
Margin
Related term
Leverage
Leverage lets a small amount of margin control a much larger position, expressed as a ratio such as 1:30 or 1:100. At 1:30, one hundred dollars of margin can su…
Spotted an error or a missing nuance?
Definitions are written by us and corrected when we are told we are wrong. If your broker quotes differently — especially on gold — say so and we will record the assumption.