Margin Requirements
Margin acts as collateral, allowing a trader to take a position.
Margin is calculated by a predefined and static calculation.
(Account Value or Equity)
--------------------------------------- X 100 = Margin %
Net Exposure
If you are facing low margin, it means that your account is at risk. You can increase your margin in two ways:
- Fund your account
- Reduce your exposure by closing open positions
Please keep in mind that margin and leverage are double edged swords and they also increase a trader’s risk potential. However, this risk is limited only to the amount you have invested in your account.