WickCheck / Trading school / Margin
MarginBeginner
The money a broker sets aside from your account to keep a leveraged position open.
What it means
Used margin grows with position size. If losses push your equity below the broker's margin level, you get a margin call and positions can be closed automatically (a stop-out).
How to spot it
- Watch free margin and margin level on your platform.
Common mistakes
- Running many positions at once until a normal move triggers a margin call.
Related terms
LeverageBorrowed buying power: 1:30 leverage lets $1,000 control a $30,000 position.…DrawdownThe fall from an account's peak to its lowest point before a new peak. Max drawd…Position sizingChoosing the trade size so a stop-out costs a fixed amount, usually a small % of…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.