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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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