Margin

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Definition of 'Margin'

Margin is a sum of money that you deposit with your broker or the clearing house to establish a credit against which to trade. This is the collateral that is used against your position.

The amount of margin you will be required to maintain will depend on the market that you are trading and the legislation for margin in that market. Your broker may require a higher level of margin than the statute dictates for extra security.


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