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Glossary

Margin (collateral)(Margin)

The amount blocked in the account to keep a leveraged position open. The used margin / equity ratio shows the health of the account.

Also written as: marjin · margin · teminat

Required margin = position size / leverage. With 1:50 leverage, roughly 2,170 USD of margin is blocked for 1 lot of EURUSD (≈108,500 USD).

"Free margin" is the amount available for a new position; "margin level" (%) = equity / used margin × 100. If this ratio falls below the threshold set by the broker, a margin call occurs, and if it drops further, a stop-out (forced liquidation) takes place.

Related terms

Where it appears in the guides

Guides whose text uses this term; most frequent first.