Margin
The amount of money or collateral an investor needs to deposit with a broker to open and maintain a position in financial markets, such as stocks, bonds, currencies, or commodities. Margin allows investors to leverage their positions and potentially amplify their returns, but it also increases the risk of losses.
When a trader opens a position in the market, they are typically required to deposit a certain percentage of the total value of the position as margin. This percentage is known as the margin requirement, and it varies depending on the financial instrument being traded, the broker or exchange, and the trader's account type and leverage.