Margin: definition and meaning
Margin is the collateral you put up to open and maintain a leveraged position.
Why it matters
If losses eat most of your margin, the position can be liquidated.
Related terms
- Leverage
Leverage lets you open a position larger than your own capital by borrowing, which multipl… - Liquidation
Liquidation is the forced closing of a leveraged position when your margin can no longer c…
Guides that explain more
- Spot vs Futures Trading: What's the Difference?
- What Is Leverage in Crypto Trading?
- What Is Liquidation in Futures Trading?
Educational content only, not financial advice.