Margin definition

The amount of funds required to open or maintain a position. It is usually expressed as a percentage of the open position. You may have a margin requirement of 0.5%, which would mean that in order to hold a position of 100,000 EUR/USD, an equity level of 500 euros or more must be maintained.

Funds that customers must deposit as collateral to cover any potential losses from adverse movements in prices.

Related words

Money SupplyMoney MarketsMarket MakerMargin CallMarginMarket OrderMonetary ReserveMonetary PolicyMini-Forex AccountMine and YoursMajor PairsMutual FundMarket Capitalization