This article has been translated from English to Gen Z Slang.

When you start playing the high-stakes game of margin trading, it's like trying to decode an entirely new language, amirite?

Just like any clout-heavy field, margin trading's got its own lingo and swag.

Check out this lit cheat sheet stacked with the commo terms you’ll spot on your trading app.

Need a hard copy?
Snag a PDF version of the cheat sheet below that you can download and print.

Margin

DEFINITION:

Margin is the stack o’ cash you're required to drop into your trading app to cop and keep spots in the forex scene. It's basically your insurance to cover any Ls you might catch.

Leverage

DEFINITION:

Leverage is all about flexing a big amount with just a little stack in your account.

Unrealized P/L

DEFINITION:

Unrealized P/L is the current cash-in or cash-out that’s still vibing in your open stonks.

ALSO CALLED:

  • Floating P/L

Balance

DEFINITION:

Balance is the total amount of greens you have chilling in your trading crib. Even if you’re sittin’ on a floating bag (or debt), your Balance stays vibing until the deal’s sealed. Hit close, and the money gets real!

ALSO CALLED:

  • Account Balance
  • Cash

Margin Requirement (Per Position)

DEFINITION:

Margin Requirement is the dough you need to have up front to slide into a position. It’s given in percents and vibes with the “full piece” or “Notional Value” you’re eyeing.

Required Margin (Per Position)

DEFINITION:

Required Margin is the cash that's benched when you open a play.

Peep this: Pop open a $10,000 (mini-lot) gig with a 2% Required Margin (or 50:1 power play), $200's on lockdown during your whole move.

This $200's M.I.A. from any new actions till you wrap things up. Close the play, and the $200 comes back to play!

ALSO CALLED:

  • Entry Margin
  • Initial Margin
  • Initial Entry Margin
  • Maintenance Margin Required (MMR)

HOW TO CALCULATE (PER POSITION):

If the base currency is the SAME as your gang’s currency:

Required Margin = Notional Value x Margin Requirement

If the base currency is DIFFERENT from your gang’s currency:

Required Margin = Notional Value x Margin Requirement 
x Exchange Rate Between Base Currency and Your Money

Used Margin

DEFINITION:

Used Margin is the bare minimum Equity you gotta keep for a margin move. It's all the margin livin' large to keep your plays open.

ALSO CALLED:

  • Margin Used
  • Maintenance Margin Required (MMR)
  • “Total Margin”

HOW TO CALCULATE:

Used Margin = Required Margin for ALL your bold moves.

Used Margin = Total Required Margin for EVERY Open Play

Equity

DEFINITION:

Equity is your account flex + the floating swag (or snag) of your open moves. It’s the “real-time” drip of your account.

ALSO CALLED:

  • Account Equity
  • Net Asset Value
  • Net Equity

HOW TO CALCULATE:

With open vibes:

Equity = Balance + Floating Profit (or Loss)

No open vibes:

Equity = Balance

Free Margin

DEFINITION:

Free Margin is the unchained cash ready to jump on new grindpaths. When this sum hits zero or low-low, you’re hit with a Margin Warning, blocking further biz action.

ALSO CALLED:

  • Available Margin
  • Usable Margin
  • Usable Maintenance Margin
  • “Available to Trade”

HOW TO CALCULATE:

Free Margin = Equity - Used Margin

Margin Level

DEFINITION:

Margin Level is the crowd control ratio of Equity compared to Used Margin in percent form. Like, $5,000 Equity and $1,000 Used Margin? Your Margin Level’s flexing at 500%.

ALSO CALLED:

  • Margin Indicator

HOW TO CALCULATE:

Margin Level = (Equity / Used Margin) x 100%

Margin Call Level

DEFINITION:

The Margin Call Level is the emergency cut-off where, if your margin level dips too low, no more new plays for you, fam. Your trading crib sets the deal on this.

Like, if the Margin Call's at 100%, reaching it means no fresh gigs until you level up. You’ve hit a Margin Call—consider it your account’s SOS.

Debunking myths: A Margin Call ain't an Oval Office of closed trades, just a gassed-up WARNING.

ALSO CALLED:

  • Minimum Margin Requirement
  • Minimum Required Margin

HOW TO CALCULATE:

Margin Call Level = Margin Level at X%

Stop Out Level

DEFINITION:

The Stop Out Level is the boss battle line where If you hit below it, your broker starts swiping your stash until you're outta the danger zone.

Like, if Stop Out is 50%, dropping below automatically cuts off the heaviest burden. This rinse-and-repeat maneuver till the Margin Level rises above 50%.

ALSO CALLED:

  • Liquidation Margin
  • Margin Closeout
  • Margin Close Out (MCO)
  • Minimum Required Margin

HOW TO CALCULATE:

Stop Out Level = Margin Level at X%

Margin Call

DEFINITION:

A Margin Call strikes when you clock the Margin Call Level without yet dipping beneath the Stop Out Level.

This is more your friendly reminder that your account’s on the ropes and could face Iron Man level liquidation soon. You can chill with your existing vibe but any new ones? Nada.

Stop Out

DEFINITION:

A Stop Out jumps into action once your Stop Out Line is crossed, and that’s when every unlocked move will auto-close (“liquidate”) to keep your account from spiraling into the red.