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M
Trading

Margin.

Capital posted to support a leveraged position.

PLAIN ENGLISH

What does Margin mean?

Margin is collateral used to open and maintain leveraged exposure. If losses reduce the available margin too far, the position may be reduced or liquidated depending on the venue.

IN THE WILD

How people use it

Futures, perpetuals and margin trading.

EXAMPLE“The trade used isolated margin so the risk stayed contained to that position.”
ALSO USED AS

collateral

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