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Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

Maintenance margin definition

Maintenance margin is the amount that must be available in funds in order to keep a margin trade open. It is also known as the variation margin.

The maintenance margin is one of two types of margin required to make a leveraged trade. The other is your deposit margin, which is the amount needed to open a new position.

To keep a leveraged position open, a certain amount of funds must be paid and kept in your account. If your position starts to make a loss, then your deposit may no longer be enough to keep the trade open. In this case, your broker will ask you to increase the funding in your account. This is called a margin call.

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