What is margin?

What is margin?

  • 31 July, 2016
  • 4:52 pm EEST

Margin is a collateral that an investor or trader is required to keep to cover potential losses. For example if the margin requirement is 5% and a trader wishes to buy $1 million (10 lots) USD/JPY, $50,000 US dollars is the margin required in his or her account (5% of 1,000,000=$50,000).

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