Question - Forex

What is margin in forex?

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2 Answers
Hyledd Priddy
Answered 1 year, 2 months ago
<p id="isPasted">Forex margin rates are usually expressed as a percentage, with forex margin requirements typically starting at around 3.3% in the UK for major foreign exchange currency pairs. Your broker’s margin requirement shows you the amount of leverage that you can use when trading forex with that broker. Margin is the amount of money that a trader needs to put forward in order to open a trade. When trading forex on margin, you only need to pay a percentage of the full value of the position to open a trade. Margin is one of the most important concepts to understand when …</p>
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Alison Moran
Answered 1 month, 1 week ago
<p id="isPasted">In forex trading, margin is a portion of your account balance that a broker sets aside as collateral or a "good faith deposit" to open and maintain a leveraged position. It is not a fee or a transaction cost, but rather a segment of your funds that is "locked up" until the trade is closed.&nbsp;</p><p><strong>How Margin Works</strong></p><p>Margin allows you to control a large position size with a relatively small amount of capital. This concept is intrinsically linked to leverage, which is the ratio determining how much larger your position is compared to your margin.&nbsp;</p><ul><li>Margin Requirement: This is …</li></ul>
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