Glossary › margin

Trading glossary · risk

margin

The money you put down as a deposit so you can control a bigger trade with borrowed money.

The fuller meaning

The deposit needed to open and hold a leveraged position; leverage = position value ÷ margin. Futures use initial and maintenance margin set by the exchange; losing margin triggers a margin call or liquidation. Margin is not the most you can lose: futures losses can exceed it.

margin.

Related words

1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve