What is Forex Margin?
Forex margin is the amount of capital required to open and maintain a leveraged trading position. It acts as a security deposit to cover potential losses.
How Margin Trading Works
When you trade on margin, you borrow funds from your broker to increase your trading position beyond your actual account balance, allowing for greater potential gains and losses.
Margin Requirements
Margin requirements are set by brokers and can vary depending on the currency pair and market conditions. Understanding these requirements is essential for effective risk management.
Risks of Margin Trading
While margin trading can amplify profits, it also increases the potential for significant losses. It's crucial to use margin responsibly and have a solid risk management strategy.
