Protection and Account Mechanics / Account mechanics

What is Margin?

Margin is the amount set aside to open and maintain a leveraged position.

Lesson 7 / 74 minBeginner
01 / What you'll learn

Margin is the amount set aside to open and maintain a leveraged position.

04 / Visual explainer
Wallet · $1,000
Used margin
Free margin
Margin is reserved. Free margin is still available.
05 / WHY IT MATTERS

Margin and free margin help you read how much room an account has.

06 / Explain it simply

What is Margin?

Margin is the amount set aside to open and maintain a leveraged position.

07 / Everyday example

It is like a security deposit for using a larger reservation. It does not equal the maximum amount you can lose.

08 / MT5 example
BrokerMT5Your order

MT5 shows balance, equity, margin, free margin, and margin level in the Toolbox area.

DEMO ACCOUNT

What is Margin?

Practice with Virtual money. No live order is required.

  1. 1Open your demo account
  2. 2Choose a symbol
  3. 3Open the order window
  4. 4Find the relevant field
  5. 5Enter a practice value
  6. 6Review before submitting
09 / Key takeaways
  • Margin supports an open position.
  • Required margin varies by product and account.
  • Margin is not a risk limit by itself.
10 / Common mistake

Thinking margin is the same as the maximum possible loss.

Mini quiz

What does margin help support?

Quiz progress is saved with this lesson when you mark it complete.