What is margin?

Margin refers to the amount of money that must be deposited as collateral to open a position. It represents a portion of the total trade size, and the required margin level varies depending on the leverage ratio. For instance, with 10x leverage, only 10% of the total trade value is required as margin to open a position. Margin is a core indicator for risk management, and positions cannot be maintained if there are insufficient funds in the account. Thus, traders must always monitor their available margin when trading.