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What is the margin in trading?

    What is the margin in trading?

    Margin is the amount of money required to open and maintain a trade.

    It acts as a collateral deposit that allows you to control a larger position in the market.

    If your account balance falls too low compared to your open trades, your positions may be closed automatically to prevent further losses.

    You will receive a margin-call when your equity reaches 100% of your used margin and a margin stop-out when your equity falls to 30% of your used margin. At this point, the trading platforms will automatically close trades to free up margin and prevent further losses.

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