Glossary
Margin
Trading
Margin is the deposit a broker requires you to set aside to open and maintain a leveraged position.
Required margin equals position size divided by leverage. A 1-lot EUR/USD position (100,000 units) at 1:30 leverage requires roughly 3,333 units of the base currency as margin.
Free margin is equity minus used margin — the buffer available for new trades and for absorbing losses. The margin level, equity divided by used margin as a percentage, is what brokers monitor: fall below the maintenance threshold and positions are closed automatically.