Initial Margin

The deposit a customer needs to make before being allocated a trading limit. It can also be described as the initial capital that a broker mandates a trader to have in his account to be used as collateral for every leveraged trade opened in the market. The requirements for initial margin differ from broker to broker and from country to country. In the US, FINRA requires traders to have an initial margin of 25% of the amount obtained from the broker as a leverage for the trade.

By |2018-09-04T14:31:26+00:00September 4th, 2018|0 Comments

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