Glossary
What is Margin
The collateral the exchange locks for a position: size ÷ leverage. If losses eat the margin down to the maintenance level, liquidation follows.
How it works
Example
A $17,016 position at 5× leverage locks $3,403 of margin. The trade's risk is still $100 — the stop sets it.
Common mistake
Confusing margin with risk: $3,403 locked does not mean $3,403 at risk.
Read next
Related terms
Frequently asked questions
- Where can I learn Margin step by step?
- In the Trading OS Academy: “Leverage is sizing, not greed”.
- What is Margin related to?
- Leverage; Liquidation; Isolated vs cross margin.
Plan versus outcome — for every trade
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