- 15 Aug 2023, 14:55
#1718
Margin is a term used in forex trading to refer to the amount of money a trader needs to deposit with their broker to open a position. Margin is not a cost but rather a security deposit that the broker holds in case the trader's position loses money. The amount of margin required for a forex trade is determined by the trade size and the leverage the broker offers. Leverage is a ratio that indicates how much exposure a trader can get with a small amount of capital. For example, if a broker offers 100:1 leverage, a trader can control $100,000 worth of currency with just $1,000 in margin.
- By Silentman