Glossary

Margin

The part of your money the broker sets aside as a deposit to keep a trade open.

Margin is not a fee and it is not your risk. Example: 0.10 lot of gold at $4,000 is a $40,000 position, and at 1:100 the margin is $400. If the trade goes against you, you lose money on the full $40,000, not only on the $400.

Related terms

Explained in these lessons