Quote:
Originally Posted by anzsai
Does that mean the margin we used is some sort of a mutual deal between us and the broker?Like if I want to begin this particular trade then just put forward a certain amount of money to the broker just to have access to the trade?
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That's pretty much exactly it. The margin has nothing at all to do with your profits on a trade. It is strictly a security deposit so your broker doesn't have to cover any losses you might make on a position.