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Glossary
TRADING GLOSSARY

Margin

The portion of your account balance a broker sets aside as collateral for an open position.

Margin is the amount of your account balance a broker locks up as collateral to open and hold a leveraged position — it isn't a fee, it's temporarily reserved equity. Required margin is calculated from the position size, the instrument's margin rate, and the leverage offered on your account; the remainder of your balance is free margin, available to absorb floating losses or open new trades.

Try the calculator: Margin Calculator

Related Terms

LeverageMargin CallFree Margin
Margin — Definition · PIPAVO