Margin is the cash you post as a good-faith deposit to open and hold a leveraged position.
It is not the cost of the position but a deposit against losses. Two levels matter: initial margin to open, and maintenance margin to keep the position open.
Part of the theme Leverage, margin and liquidation.
Margin is the cash you post as a good-faith deposit to open and hold a leveraged position.
It is not the cost of the position but a deposit against losses. Two levels matter: initial margin to open, and maintenance margin to keep the position open.