Margin (มาร์จิ้น)

Margin is money in your trading account that is locked while a trade is open. It works like a security deposit. It is not a cost or a fee, and it becomes available again when you close the position.

Margin exists because of leverage. Leverage lets you control a position bigger than your own money, and margin is the part of your funds that supports that position.

Simple example

You open a position worth 10,000 USD with leverage of 1:100.

• Required margin = 10,000 ÷ 100 = 100 USD
• If your balance is 1,000 USD, then 100 USD is used margin.
• The other 900 USD (adjusted for any profit or loss on the open trade) is your free margin, which you can use for new trades or to absorb losses.

Related terms

• Free Margin: equity not tied up as margin.
• Margin Level: equity divided by used margin, shown as a percentage.
• Margin Call: a warning when your margin level falls too low.
• Stop Out: the automatic closing of positions when the level falls even lower.

Common beginner mistake

Many beginners think margin is the most they can lose. It is not. Your loss can be larger than the margin, because it depends on the full position size. Opening trades that use most of your free margin leaves no room for price to move against you, so a small move can trigger a Stop Out. Always check the margin a trade needs before you open it.