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What Is Margin?
In futures trading, margin is the deposit you make with your broker in order to open a new futures position, no matter if you are taking the long or short side of the trade.
This margin then becomes a running balance of your profit and loss where profits will be added onto and losses taken from it. Once your margin has dropped to a critical level due to losses, a margin call will be issued for you to top up your margin in order to stay in the position. Failing which your position will be forcefully liquidated.
Read the full tutorial on Margin.