Margin refers to the funds required to open and maintain a leveraged position in financial markets.
There are several types of margin in forex trading that you need to be familiar with:
- Initial Margin (required to open a position);
- Maintenance Margin (required to keep the position open).
After placing a position on market, you may need to deposit additional funds if your trade begins to experience losses and your margin deposit is insufficient to maintain the position. This additional funs is called maintenance margin.
In this case, when your equity falls below the required maintenance margin level, a margin call occurs.
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