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What is Margin - Definition | Forex Dictionary

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Full Trader
(@fulltrader)
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Margin is the amount of money the broker holds from your account as collateral to keep a leveraged position open. It is not a cost, but a deposit temporarily locked while the trade is active.

Why it matters: if your losses consume the available margin, the broker can close your positions automatically in what is called a margin call. Watching the margin level avoids surprises.



   
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