Glossary
What is Margin?
Margin is collateral your broker holds for leveraged trades. Running out of margin can close positions early.
Margin is the account equity set aside to open and maintain leveraged positions. Free margin is what remains for new trades or to absorb floating losses.
A Signal that looks small in pips can still consume margin if lot size is large. Position sizing and margin are related but not identical: sizing targets dollar risk at the stop; margin is the broker's collateral rule.
If margin is exhausted, brokers can stop you out regardless of the Signal's published stop loss.
Related terms
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