Margin

Fundamentals

Borrowed money from a broker to purchase securities. Margin amplifies both gains and losses. A margin call occurs when the account equity falls below the broker's required minimum.

Related Terms

Equity

The total value of a trading account, including cash and the current value of all open positions.

Position Sizing

Determining how many shares or contracts to trade based on account size and risk per trade.

Learn More

Setting Up Your Trading Infrastructure

Level 1: Foundation · 15 min