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Margin

In one line: The money you must put up to open and keep a leveraged position.

Margin is the deposit the broker holds while you use Leverage. If the trade goes against you and your margin gets too small, the broker can close your position for you.

The SECThe US stock market regulator. describes a margin account like this: the broker lends you money to buy, and your account is the security (collateral) for that loan.

There are EU rules for retail CFDBetting on a price change without owning the asset. clients set by ESMA. The provider must close your positions when your account margin falls to 50% of the minimum required margin. The same rules add negative balance protection. That means a retail clientAn ordinary individual investor, not a professional. cannot lose more than the money in the account.

Related

Sources & studies

  1. Investor.gov (SEC): Margin account
  2. ESMA: ESMA agrees to prohibit binary options and restrict CFDs to protect retail investors
  3. Investopedia (secondary): Margin

Trading termsLeverageCFDs (contracts for difference)

Last checked: 2026-11-04 · Educational, not financial advice.

Education only, not financial advice. No signals. Backtests are hypothetical: real trading can be worse. Past results don't predict future results.