FxPro Help Centre - Glossary

Margin

In the world of Forex trading, "Margin" refers to the amount of money required to open and maintain a leveraged position. It is essentially a security deposit that traders need to provide to ensure that they can cover potential losses. Margin allows traders to control larger positions than they could with their own capital alone, thereby amplifying both potential gains and risks.

When trading on margin, it's important to understand the concept of "Margin Call," which occurs when the equity in your account falls below the required margin level, prompting your broker to request additional funds or to close your positions to prevent further losses.

In summary, margin trading can be a powerful tool, but it requires careful risk management to avoid significant losses.