Risk

What is Margin?

By the verify.trading team · Last reviewed 29 September 2026 · How we write

Margin is the amount a broker sets aside from your account to keep a leveraged position open. It is a deposit held against the trade, not a fee.

Key points

Required margin = position value / leverage.
Free margin is what is left to absorb losses.
Margin is held, not spent.

Margin explained

Required margin equals the position value divided by the leverage. The rest of your balance is free margin, which absorbs losses. If losses eat into the margin, you risk a margin call.

Margin is released when the position closes. Opening several positions adds their required margin together.

Example

One standard lot of EUR/USD at 1.0850 with 30:1 leverage needs about 3,617 USD of margin.

Related terms

Related tools and guides

Margin calculator

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