Margin – The portion of funds from your account set aside (as collateral) to open or maintain a leveraged position. It’s not a fee but a hold on your balance. For example, with 100:1 leverage, opening a $100,000 position requires $1,000 margin. BabyPips explains margin as “a portion of your funds set aside to open and maintain a trade”. Margin is typically calculated per lot or position size, and it ensures you can cover potential losses.

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