The concept
is the collateral required to hold a leveraged position. If losses reduce equity below the maintenance level, a margin call or automatic close-out follows.
Why it matters
Margin rules can close positions at the worst moment.
How markets interpret it
Brokers may raise margin requirements during volatile periods.
Key takeaways
- Margin is collateral, not a fee.
- Falling below requirements triggers close-outs.
Knowledge check
A margin call happens when…
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