What is Margin Trading?

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What is free margin? What is margin level? What is a margin call? What is a stop out or margin closeout?

As you can see, there is A LOT of “margin jargon” used in forex trading.

 

Before you choose a forex broker and begin trading with margin, it’s important to understand what all this margin jargon means.

 

This starts with understanding what the heck some (really important) numbers you see on your trading platform really mean.

We’ll call these numbers your margin account’s “metrics”.

 

For example, take a look at the MetaTrader 4, also known as MT4, trading platform:

What is Margin Trading?

The metrics above are all intertwined.

 

A change in one causes a change in another.What is Margin Trading?

As a trader, you need to be aware of the relationships between them…

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