The minimum amount of funds a trader must deposit with a broker to open and maintain a leveraged position.
Margin is the collateral a trader must deposit with their broker to enter and hold positions in futures and short options, which carry potentially large or unlimited risk. It typically consists of an initial (SPAN) margin covering worst-case price moves and an exposure margin as an additional buffer. If losses erode the margin below the required maintenance level, the broker issues a margin call, and positions may be squared off if additional funds aren’t added.
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