What is Margin in Forex?

Margin is the amount of money a trader must set aside with a broker to open and maintain a leveraged forex position. For example, 

• Suppose a trader opens a ₹100,000 position with 20:1 leverage. 
• Now, the required margin would be ₹5,000 (₹100,000/20).

However, note that the ₹5,000 is not the maximum amount the trader can lose. Still, the trader remains exposed to the price movement of the full ₹100,000 position.

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