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The initial margin is the minimum amount you’ll need to put up to open a position.

It is sometimes called the required margin, entry margindeposit margin, or just the deposit.

Initial margin can be thought of as a good faith deposit or collateral that’s needed to open a position.

Margin is NOT a fee or a transaction cost.

Margin is simply a portion of your funds that your forex broker sets aside from your account balance to keep your trade open and to ensure that you can cover the potential loss of the trade.

Initial Margin

This portion is “used” or “locked up” for the duration of the specific trade.

Once the trade is closed, the margin is “freed” or “released” back into your account and can now be “usable” again… to open new trades.

Depending on the currency pair and forex broker, the amount of margin required to open a position VARIES.