In the Forex market, “margin” is the term used to describe the collateral or funds you need to deposit with your broker to open and maintain a trading position. Margin allows you to leverage your capital and control a larger position size than the amount of money you have in your trading account at Tradeopol 

There are different types of margin in Forex trading:

1.Minimum Margin: Also known as “required margin,” it refers to the minimum amount of funds you need to have in your account to initiate a trade. The specific minimum margin requirement can vary based on the financial instrument being traded and the leverage offered by your broker. In Turkey, Forex regulations may require traders to have a minimum of 10 times their invested capital as margin.

2.Free Margin: After you’ve opened a position, the remaining funds in your account that are not tied up in open trades are referred to as free margin. It represents the amount of money you can use to open new positions or cover losses in your existing positions. Free margin is calculated by deducting the total margin used in your open positions from your account balance. When your free margin drops to zero or below, it can trigger a “Margin Call.”

3.Used Margin: This is the portion of your account’s equity that is currently being held as collateral for your open positions. It represents the funds that are “in use” to maintain your trades. Used margin is calculated by adding up the margin requirements of all your open positions.

4.Margin Call: If your account’s equity falls below a certain level due to trading losses, your broker may issue a margin call. This means you’ll need to deposit additional funds to meet the minimum margin requirements or close some of your losing positions to reduce your used margin. Failure to meet a margin call may lead to automatic position closures by your broker.

5.Leverage: Leverage is a key feature in Forex trading that allows you to control a large position with a relatively small amount of capital. It magnifies both potential profits and losses. The leverage ratio can vary from one country to another and from one broker to another. In Turkey, leverage ratios are regulated and limited to a certain level to protect retail traders.

In summary, margin in the Forex market refers to the funds you need to have in your trading account to open and maintain positions. It’s a critical concept in Forex trading, and understanding how it works is essential to manage your risk effectively.