What Is Margin? | FXTM Learn Forex in 60 Seconds

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Margin is the amount of funds that the broker requires from the trader as collateral, in order to open a specific position of volume based on the leverage that the client has selected.
Watch the video for the full definition straight from FXTM Head of Education, Andreas Thalassinos.

Disclaimer: The content in this video comprises personal opinions and ideas and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability as to any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose, it is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear to you, please seek independent financial advice.

[swedensroutine]

If Ideposit 2000 USD and trade with it and make benefits and with benefits I have 30, 000 USD after a period, Then if I make this trade with 20, 000 USD of my 30, 000 USD existing in my account, is it possible to do it ? Or I most deposit 20, 000 USD also to do this transaction as in this video?

[bryansuetens]

where does the 4 procent comes from, or is this dependant on the broker ?

[Tech-To-Logic]

I think there is a wrong calculation in this video, if leverage ratio is 1:25, my deposit amount is 20000 dollar, now if I buy 2 standard lot then bought unit should be
So Margin should be like this 000 *4% = 14400

[fernandoluis]

If you deposid only $20k, how can you buy $240k worth of USDEUR?

[ripplerfx]

So basically if I have $20k in my account, I need to ALWAYS have at LEAST $9, 600 in free margin to hold a 2.0 lot of EURUSD? And if I don't have $9, 600 of free margin my 2.0 lot trade will hit margin call and close me with a loss of $9, 600?