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Forex Basics

Margin

The deposit required to open and maintain a leveraged trading position.

Full Definition

Margin is the collateral required by your broker to open and hold a leveraged position. It is expressed as a percentage of the full position size. With 1% margin requirement (100:1 leverage), you need $1,000 to open a $100,000 position. Free margin is unused funds available for new trades, while used margin is locked in open positions.

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