What is Margin and margin call?

Understanding Margin and Margin Call in Forex Trading

This lesson explains what margin is during trading, how it operates, and what a margin call is. It’s an essential topic for understanding how to trade in the Forex market.

Important Terms:

  • Used Margin: The amount of money held by the broker to open and maintain a position.
  • Usable Margin: The amount remaining in the account after deducting the used margin. It is available for opening new positions, and if you incur losses, the broker uses this margin to cover those losses.

We hope this information is helpful to everyone.

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