What is Required Margin? - Deepstash

What is Required Margin?

Required Margin is the amount of money that is set aside & “locked up” when opening a position. It is also known as Deposit Margin, Entry Margin, or Initial Margin.

When trading with margin, the amount of margin (Required Margin) needed to hold open a position is calculated as a percentage (Margin Requirement) of the position size (Notional Value).

The specific amount of Required Margin is calculated according to the base currency of the currency pair traded.

If the base currency is DIFFERENT from your trading account’s currency, the Required Margin is then converted to your account denomination.

16

82 reads

CURATED FROM

IDEAS CURATED BY

I want to make summary of what I have learned about Forex so that I can refresh it again.

Similar ideas to What is Required Margin?

What is Margin of Safety?

What is Margin of Safety?

‘Margin of safety’ is the difference between a stock price and its intrinsic worth, or value.

So if a stock is trading at  $70 in the market, and you calculate the company’s intrinsic value as $100, you have a margin of safety of  $30 (100 minus 70). In other terms, the sto...

Why Trade Forex: Forex vs. Futures

  • The futures markets can’t compete with its relatively limited liquidity while the forex market is always liquid.
  • 24-Hour Market
  • Minimal or no commissions
  • When trading forex, you get rapid execution and price certainty under normal market conditions. In contrast, the f...

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates