Margin is the amount of capital required in your account to open and maintain a leveraged position. It is not a fee — it is a security deposit held by the broker while the trade is open. The required margin depends on the position size, leverage ratio, and the instrument being traded. Free margin is the amount available to open new positions.
To open 1 standard lot of EUR/USD with 1:500 leverage, you need approximately $220 in margin (100,000 ÷ 500). The rest of your account balance remains as free margin.
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