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📊 What is Margin and how is it calculated?

Tim avatar
Written by Tim
Updated over 6 months ago

Margin is the amount of capital required to open a position. It acts as collateral and depends on your chosen leverage and position size.

Margin = Trade Size ÷ Leverage

Example:
To open a $100,000 position with 1:100 leverage, you need:


$100,000 ÷ 100 = $1,000 margin

The margin required is shown in your trading platform before you confirm a trade.

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