June 24, 2017

What is Margin?

Margin acts like collateral which is insured against future trade loss. It gives trader an opportunity to take advantage of leverage according to the equity required to invest in forex transaction. With margin facility trader can invest greater than its actual fund capacity. For this purpose a pre-check is carried out for margin availability. If sufficient balance is found in trader account then trade is executed otherwise system closes the open positions to protect trader deposited funds in ever changing forex market.