LEARNING CENTRE

Margin & leverage

Margin

Part of your capital is committed to maintaining trading exposure. The required amount depends on contract, volume and account rules.

Provides exposure larger than committed capital. It magnifies both profits and losses relative to that capital.

Equity changes with floating profit and loss. Free margin is equity minus used margin. Check the precise definitions in your account terms.

This content introduces general concepts. The broker's contract terms govern trading.