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Margin — definition & meaning

The deposit a broker holds to keep a leveraged position open.

Margin is the amount of your own money set aside as a good-faith deposit to open and hold a leveraged trade. It is not a fee — it is collateral.

Required margin depends on position size and leverage. At 30:1 leverage, a £30,000 position needs about £1,000 of margin. If losses eat into your balance, the broker may ask for more margin or close your positions.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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