Necessary Margin Level

A Guarantee (in monetary expression), which is required by the dealer to maintain an open position. In leveraged markets, the trader is required to maintain a margin in order to sustain trades that are open against losses. It is the necessary margin that a broker looks at before issuing a margin call and closing positions as a result. If the trader has enough of the necessary margin in his account to maintain a position, a margin call will not be issued and active positions would not be closed.

By |2018-09-04T14:44:33+00:00September 4th, 2018|0 Comments

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