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

Common mistakes

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…
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