What is margin and how does it work?

Margin is the amount of money required in your account to open and maintain a leveraged position. Think of it as a security deposit.

Key concepts:

• Required Margin: The funds locked by the broker to keep your trade open.
• Free Margin: The money available to open new trades.
• Margin Level: A percentage showing your account health.

How it works:

1. Your Balance is your deposited cash.
2. When you open a trade, a portion of your balance is locked as Margin.
3. If your open trades lose money, your Equity drops.
4. If Equity falls too low relative to Margin, you may face a Margin Call or Stop Out, where positions are closed automatically to protect your account.

Check your Margin Level in the terminal to ensure you have enough free margin for new trades.