Trading Margin Explained

Trading Margin

The demand for robust returns in the capital markets environment has created an environment where investors require capital to enhance their returns.  This demand has generated a sophisticated process in which investors can borrow capital that is used to invest in stocks and futures to enhance their returns.  Most brokers offer trading margin as a product which allows investors to borrow capital using the securities they hold within their account as collateral.  Margin provides leverage, which can enhance and detracted from returns.

Trading Margin Defined

Trading Margin is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty.  Margin is most often associated with a broker or an exchange. The collateral that can be used to post margin can be in the form of cash or securities, and it is deposited in a margin account.

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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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