Forex trading involves risk. Losses can exceed deposits

Maintenance margin definition

Forex trading involves risk. Losses can exceed deposits

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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