Margin Definition

Margin is the amount of capital required to open and maintain a leveraged trading position.

What is Margin?

Margin acts as a good-faith deposit rather than a fee, and is returned when the position is closed, adjusted for any profit or loss.

The margin required depends on the leverage offered and the size of the position.

Opening a $50,000 position with 2% margin would require $1,000 to be set aside as margin.

A margin call is a broker notification that an account's equity has fallen close to or below the required margin level.

Market capitalization is the total market value of a company's outstanding shares.

A market maker is a firm or individual that provides liquidity by continuously quoting buy and sell prices for an asset.